The following data are taken from the comparative balance sheets prepared for Gubler Wholesale Company.
...................................................................2013................... 2012
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 43,000.............. $ 22,000
Accounts receivable (net). . . . . . . . . . . . . . . . . . . . . . 31,000................ 42,000
Inventories . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 71,000................. 33,000
Property, plant, and equipment (net) . . . . . . . . . . . . . 106,000 ................59,000
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... $251,000.............. $156,000
Sales for 2013 were $1,200,000. Sales for 2012 were $1,000,000.
1. Prepare the Assets section of common-size balance sheets for Gubler Wholesale Company for 2013 and 2012.
2. Overall, Gubler Wholesale is less efficient at using its assets to generate sales in 2013 than in 2012. What asset or assets are responsible for this decreased efficiency?