Question
***I need the percentages running next to the account values for both years in this common-sized balance sheet please. The numbers in the 2017 and
***I need the percentages running next to the account values for both years in this common-sized balance sheet please. The numbers in the 2017 and 2016 column are correct.***
Scenario: You are required to conduct an analysis of specific financial data of Bob Smith, Inc. Bob is an existing bank customer. When the loan to Bob was originally made in 2016, the bank required Bob to increase the YE 2016 cash balance to at least $70,000 to qualify for the interest rate that the bank used for the original loan. This cash balance was required for the bank to make its target yield on the loan created. The Cash Flow Statement and Balance Sheet show an actual YE 2017 cash balance of less than $34,000.
Common-Size Balance Sheet | |||||
Assets | 2017 | % of Assets | 2016 | % of Assets | $ Value Effect on Cash |
Cash & Marketable Securities | $33,411 | $16,566 | $16,845 | ||
Accounts Receivable | $260,205 | $318,768 | ($58,563) | ||
Inventory | $423,819 | $352,740 | $71,079 | ||
Other Current Assets | $41,251 | $29,912 | ($11,339) | ||
Total Current Assests | $758,686 | $717,986 | ($40,700) | ||
Plant Property and Equipment | $1,512,675 | $1,403,220 | $109,455 | ||
Goodwill and Other Assests | $382,145 | $412,565 | $30,420 | ||
Total Assets | $2,653,506 | $2,533,771 | ($119,735) | ||
Liabilities and Stockholders' Equity | |||||
Accounts Payable and Accruals | $378,236 | $332,004 | $46,232 | ||
Notes Payable | $14,487 | $7,862 | $6,625 | ||
Accrued Income Taxes | $21,125 | $16,815 | $4,310 | ||
Total Current Liabilities | $413,848 | $356,681 | $57,167 | ||
Long-term Debt: Bank Notes | $679,981 | $793,515 | ($113,534) | ||
Total liablities | $1,093,829 | $1,150,196 | ($56,367) | ||
Total Common Equity | $1,559,677 | $1,383,575 | $176,102 | ||
Total Liabilities and Equity | $2,653,506 | $2,533,771 | $119,735 |
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