Common-Size Balance Sheet The following data are taken from the comparative balance sheet prepared for Warren Road Company:

Sales for 2009 were $1,000,000. Sales for 2008 were $800,000.
1. Prepare the asset section of a common-size balance sheet for Warren Road Company for 2009 and 2008.
2. Overall, Warren Road is less efficient at using its assets to generate sales in 2009 than in 2008. What asset or assets are responsible for this decreased efficiency?

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Cash Accounts receivable Inventories. Property, plant, and equipment Total assets 2009 $ 34,000 2008 $ 25,000 43,000 40,000 68,000 30,000 91,000 55,000 $236,000 $150,000