Spain Corporation’s condensed comparative balance sheets and condensed comparative income statements for 2011 and 2010 follow.

Required 1. Prepare schedules showing the amount and percentage changes from 2010 to 2011 for the comparative income statements and the balance sheets.
2. Prepare common-size income statements and balance sheets for 2010 and 2011.
3. Comment on the results in requirements 1 and 2 by identifying favorable and unfavorable changes in the components and composition of the statements.

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Spain Corporation Comparative Balance Sheets December 31, 2011 and 2010 2011 2010 Assets Cash $ 50,000 $ 60,000 Accounts receivable (net) 120,000 100,000 Inventory 400,000 300,000 Property, plant, and equipment (net) 330,000 40,000 Total assets $900,000 $800,000 Liabilities and Stockholders' Equity Accounts payable $200,000 $200,000 Notes payable (short-term) 100,000 200,000 Bonds payable 100,000 Common stock, $20 par value 200,000 200,000 Retained earnings 300,000 200,000 Total liabilities and stockholders' equity $900,000 $800,000