Compare and contrast the two common-size balance sheets below. Firm A may belong to an auto manufacturer, and Firm B may belong to a computer manufacturer. Is this statement true or false? Common Size Balance Sheets Assets Firm A Firm B Cash 10.60% 26.70% Accounts 0.90% 18.80% receivable Inventory 2.90% 1.70% Other current assets 5.00% 7.90% Total current assets 19.40% 55.10% Net plant and equipment 13.30% 7.90% Other long-term assets 67.30% 37.10% Total assets 100.00% 100.00% Liabilities Accounts payable 6.50% 37.90% Notes payable 0.60% 0.00% Other current liabilities 19.00% 18.50% Total current liabilities 26.00% 56.40% Long-term debt 56.30% 2.60% Other liabilities 13.90% 8.40% Total liabilities 96.30% 67.50% Common equity 1.00% 0.80% Retained earnings 2.70% 31.70% Total stockholders' equity 3.70% 32.50% Total liabilities and equity 100.00% 100.00% True False Use your knowledge of balance sheets, what is the retained earnings in the text below? ASSETS LIABILITIES Cash Accounts receivable 50,000 80,000 100,000 $ Accounts payable Notes payable Total current liabilities Inventory 12,000 50,000 $ 228,000 $ Total current assets Long-term debt Gross P&E 730,000 Total liabilities Common stock Less accumulated depreciation Net P&E 130,000 $ Paid-in capital Retained earnings Total liabilities and equity 100,000 250,000 $ Total assets $ $ 1 440,000 190,000 200,000 O 290,000