Question: The following data are taken from the comparative balance sheet prepared for Route 13 Company. Sales for Year 2 were $1,250,000. Sales for Year 1

The following data are taken from the comparative prepared for Route 13 Company.

Sales for Year 2 were $1,250,000. Sales for Year 1 were $800,000.
1. Prepare a common-size balance sheet for Year 1 and Year 2.
2. Overall, Route 13 Company is less efficient at using its assets to generate sales in Year 2 than in Year 1. What asset is responsible for this decreased efficiency?

Year 2 Year 1 39,063 25,000 62,500 67000 30,000 156250100,000 Cash. Accounts receivable 40,000 Property, plant, and equipment. 324813 $195,000

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Year 2 Year 1 Amount Percent Amount Percent Cash 39063 31 25000 31 Accounts receivable 6250... View full answer

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