Question
In addition to common-size financial statements, common-base-year financial statements are often used. Common-base year financial statements are constructed by dividing the current-year account value by
In addition to common-size financial statements, common-base-year financial statements are often used. Common-base year financial statements are constructed by dividing the current-year account value by base-year account value. Thus, the result shows the growth rate in the account. Prepare the common-size balance sheet and common-base-year balance sheet for the company. Use 2016 as the base-year. (Do not round intermediate calculations. Enter all common-size answers as a percent. Round your common-size answers to 2 decimal places, e.g., 32.16, and common-base-year answers to 4 decimal places, e.g., 32.1616.)
JARROW CORPORATION | ||||||||||||||
2016 | Common-size | 2017 | Common-size | Common-base year | ||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash | $ | 8,164 | % | $ | 10,104 | % | ||||||||
Accounts receivable | 20,753 | % | 23,237 | % | ||||||||||
Inventory | 37,122 | % | 42,097 | % | ||||||||||
Total | $ | 66,039 | % | $ | 75,438 | % | ||||||||
Fixed assets | ||||||||||||||
Net plant and equipment | 215,670 | % | 243,640 | % | ||||||||||
Total assets | $ | 281,709 | % | $ | 319,078 | % | ||||||||
Liabilities and Owners Equity | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable | $ | 41,198 | % | $ | 46,184 | % | ||||||||
Notes payable | 17,764 | % | 17,335 | % | ||||||||||
Total | $ | 58,962 | % | $ | 63,519 | % | ||||||||
Long-term debt | 24,300 | % | 31,300 | % | ||||||||||
Owners' equity | ||||||||||||||
Common stock and paid-in surplus | 38,300 | % | 39,500 | % | ||||||||||
Accumulated retained earnings | 160,147 | % | 184,759 | % | ||||||||||
Total | $ | 198,447 | % | $ | 224,259 | % | ||||||||
Total liabilities and owners' equity | $ | 281,709 | % | $ | 319,078 | % | ||||||||
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