Common-size financial statements. The balance sheet information for two companies is in the popup window: Complete the common-size balance sheet for these companies. Review each company's percentages of total assets. Are these companies operating with similar philosophies or in similar industries? What appears to be the major difference in financing for these two companies? % of % of % of % of Balance Total Balance Total Balance Total Balance Total ASSETS Co. 1 Assets Co. 2 Assets LIABILITIES Co. 1 Assets Co. 2 Assets Current assets Current liabilities % Accounts payable Cash $ 5,377 % $ 299 $ 12,309 % $ 661 % Investments $ 4,146 % $ 354 % Short-term debt $ 1,139 % $ 0 % Accounts receivable $ 8,100 % $ 221 % Other short-term Inventory $ 5,372 % $ 494 % liabilities $ 0 % $ 122 % Total current assets $ 22,995 % $ 1,368 % Total current liabilities % $ 783 % 13,448 2,955 Long-term investments $ 84 % $ 307 A A A $ % $ 4 % Long-term debt Other liabilities % 4,991 % $ 54 % Net plant, property and equipment $ 9,846 % $ 1,471 % Total liabilities $ 21,394 % $ 841 % Goodwill $ 5,390 % 69 % OWNERS' EQUITY Intangible $ 6,149 % A A A $ 27 % Common stock $ 3,120 % $ 1,026 % Other $ 3,799 % $ 86 $ A A A -6,754 % $ 0 % Treasury stock Retained earnings % 30,503 % $ 1,461 % Total owners' equity $ 26,869 % $ 2,487 % TOTAL LIABILITIES TOTAL ASSETS $ 48,263 100.00 % $ 3,328 100.00 % AND OWNERS' EQUITY $ 48,263 100.00 % $ 3,328 100.00 % Common-size financial statements. The balance sheet information for two companies is in the popup window: Complete the common-size balance sheet for these companies. Review each company's percentages of total assets. Are these companies operating with similar philosophies or in similar industries? What appears to be the major difference in financing for these two companies? % of % of % of % of Balance Total Balance Total Balance Total Balance Total ASSETS Co. 1 Assets Co. 2 Assets LIABILITIES Co. 1 Assets Co. 2 Assets Current assets Current liabilities % Accounts payable Cash $ 5,377 % $ 299 $ 12,309 % $ 661 % Investments $ 4,146 % $ 354 % Short-term debt $ 1,139 % $ 0 % Accounts receivable $ 8,100 % $ 221 % Other short-term Inventory $ 5,372 % $ 494 % liabilities $ 0 % $ 122 % Total current assets $ 22,995 % $ 1,368 % Total current liabilities % $ 783 % 13,448 2,955 Long-term investments $ 84 % $ 307 A A A $ % $ 4 % Long-term debt Other liabilities % 4,991 % $ 54 % Net plant, property and equipment $ 9,846 % $ 1,471 % Total liabilities $ 21,394 % $ 841 % Goodwill $ 5,390 % 69 % OWNERS' EQUITY Intangible $ 6,149 % A A A $ 27 % Common stock $ 3,120 % $ 1,026 % Other $ 3,799 % $ 86 $ A A A -6,754 % $ 0 % Treasury stock Retained earnings % 30,503 % $ 1,461 % Total owners' equity $ 26,869 % $ 2,487 % TOTAL LIABILITIES TOTAL ASSETS $ 48,263 100.00 % $ 3,328 100.00 % AND OWNERS' EQUITY $ 48,263 100.00 % $ 3,328 100.00 %
