The following data are taken from the comparative balance sheet prepared for Warren Road Company:

Sales for 2012 were $1,000,000. Sales for 2011 were $800,000.
1. Prepare the asset section of a common-size balance sheet for Warren Road Company for 2012 and 2011.
2. Overall, Warren Road is less efficient at using its assets to generate sales in 2012 than in 2011. What asset or assets are responsible for this decreased efficiency?

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2011 2012 S 34,000 43,000 68,000 91,000 $236,000 Cash Accounts receivable $ 25,000 30,000 55,000 Inventories. Property, plant, and equipment Total assets $150,000