E 3-5 Common-Size Balance Sheet Warren Road Company The following data are taken from the comparative balance sheet prepared for Warren Road Company: 20X2 20X1 Cash $ 34,000 $ 25,000 Accounts receivable 43,000 40,000 Inventories 68,000 30,000 Property, plant, and equipment 91,000 55,000 Total assets $236,000 $150,000 Sales for 20X2 were $1,000,000. Sales for 20X1 were $800,000. Required 1. Prepare the asset section of a common-size balance sheet for Warren Road Company for 20X2 and 20X1. 2. Overall, Warren Road is less efficient at using its assets to generate sales in 20X2 than in 20X1. What asset or assets are responsible for this decreased efficiency?