Hi

In Chapter 19 1A Balance sheet.I don t understand how 4.31 is the answer. Need help with the steps I understand the concept. In your solution page I am not getting it.

regards, Hils

1. In the following balance sheet, find the percent for each 2012 and 2011 item. Then find the amount and percent of change. Round percents to two decimal places. (1/2 point for each correct answer) Marston Manufacturing Corporation Balance Sheet As of December 31, 2012 and 2011 2012 2012 2011 2011 Increase/Decrease Amount Percent Amount Percent Amount Percent ASSETS Current assets: Cash $365,000 $ 325,000 Accounts receivable 982,600 872,400 Inventory 635,700 597,200 Total current assets $1,983,300 $1,794,600 Fixed assets: Machinery $2,965,000 $2,965,000 Less depreciation 575,00 460,000 Machinery net $2,390,000 $2,505,000 Building 3,500,000 3,200,000 Land parcel holdings 600,000 500,000 Total fixed assets $6,490,000 $6,205,000 TOTAL ASSETS $8,473,300 $7,999,600 LIABILITIES Current liabilities: Accounts payable $ 472,800 $ 425,250 Accrued payroll 125,700 117,000 Payroll taxes payable 35,850 28,735 Total current liabilities $ 634,350 $ 570,985 Long-term liabilities: Mortgages payable $1,250,000 $1,420,000 Note payable long term 750,000 650,000 Total long-term liabilities $2,000,000 $2,070,000 Total liabilities $2,634,350 $2,640,985 Shareholders' equity: Common stock $3,500,000 $3,450,000 Preferred stock 750,000 725,000 Retained earnings 1,588,950 1,183,615 Total shareholders' equity $5,838,950 $5,358,615 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $8,473,300 $7,999,600