Crowley Building Supply sells various building materials to retail outlets. The company has just approached Sycamore State Bank requesting a $300,000 loan to strengthen the Cash account and to pay certain pressing short-term obligations. The company's financial statements for the most recent two years follow:

Crowley Building SupplyComparative Balance Sheets

This Year Last Year

AssetsCurrent assets:

Cash $55,000 $140,000

Marketable securities 0 18,000

Accounts receivable, net 473,000 285,000

Inventory 947,000 587,000

Prepaid expenses 18,000 25,000

Total current assets 1,493,000 1,055,000

Plant and equipment, net 1,638,620 1,543,580

Total assets $3,131,620 $2,598,580

Liabilities and Stockholders' Equity

Liabilities:

Current liabilities $803,000 $442,000

Bonds payable, 8% 615,000 615,000

Total liabilities 1,418,000 1,057,000 Stockholders' equity:

Preferred stock, $25 par, 7% 315,000 315,000

Common stock, $10 par 507,000 507,000

Retained earnings 891,620 719,580

Total stockholders' equity 1,713,620 1,541,580

Total liabilities and stockholders' Equity $3,131,620 $2,598,580

Crowley Building SupplyComparative Income Statement and ReconciliationThis YearLast YearSales$5,015,000$4,357,000Cost of goods sold3,866,0003,430,000Gross margin1,149,000927,000Selling and administrative expenses653,000534,000Net operating income496,000393,000Interest expense49,20049,200Net income before taxes446,800343,800Income taxes (35%)156,380120,330Net income290,420223,470Dividends paid:Preferred dividends22,05022,050Common dividends96,33060,840Total dividends paid118,38082,890Net income retained172,040140,580Retained earnings, beginning of year719,580579,000Retained earnings, end of year$891,620$719,580

During the past year, the company has expanded the number of lines that it carries in order to stimulate sales and increase profits. It has also moved aggressively to acquire new customers. Sales terms are 2/10, n/30. All sales are on account.

Assume that the following ratios are typical of companies in the building supply industry:

Current ratio2.5Acid-test ratio1.2Average collection period18daysAverage sale period50daysDebt-to-equity ratio0.75Times interest earned6.0Return on total assets10%Price-earnings ratio9

Required:Present the balance sheet in common-size form.

This Year Last Year

Cash ? % ? %

Marketable Securities ? % ? %

Accounts receivable, net ? % ? %

Inventory ? % ? %

Prepaid expenses ? % ?%

Total current expenses ? % ? %

Plant and equipment, net ? % ? %

Total assets ? % ? %

LIABILITIES AND STOCKHOLDERS EQUITY

Liabilities:

current liabilites ? % ? %

bonds payable, 8% ? % ? %

total liabilities ? % ? %

stockholders equity:

preferred stock, $25 par, 7% ? % ? %

common stock, $10 par ? % ? %

retained earnings ? % ? %

total stockholders equity ? % ? %

total liabilities and equity ? & ? %