Managerial Finance -MG 670

Hi

i need help with home work. I know how to do the calculation but I need help with explanation.

"Please use the common size to analyze both statement and provide a clear calculation and explanation."

"Please pick the highest and lowest number (percentage) and explain that what you think"

Consolidated Business Inc. Consolidated Balance Sheet as of December Year 4 Percentage Year 3 Percentage Assets Cash $ 250,000 18.25 $ 195,000 15.72 Account receivable 125,000 9.12 140,000 11.29 Available for sale securities 320,000 23.36 315,000 25.40 Plant and equipment 675,000 49.27 590,000 47.58 100 $ 1,240,000 100 Total Assets $ 1,370,000 Liabilities Account Payable $ Accrued expenses 15.11 $ 135,000 21.95 75,000 54.74 80,000 13.00 400,000 Long-term notes payable Total Liabilities 207,000 29.20 400,000 65.04 $ 682,000 100 $ 615,000 100 $ 275,000 20.07 $ 275,000 22.18 Shareholders' equity Common stock Additional paid-in-capital 130,000 9.49 130,000 10.48 Retained earnings Accumulated other comprehensive income 220,000 1.60 165,000 13.31 23,000 1.68 19,000 1.53 589,000 47.5 36,000 2.90 Total shareholders' equity $ Noncontrolling interest Total equity Total liabilities and equity 648,000 40,000 $ 47.30 $ 2.92 688,000 4.96 $ 625,000 50.40 $ 1,370,000 100 $ 1,240,000 100 Consolidated Business Inc. Consolidated Business Inc. Consolidated Statement of Income for the year ended December 31 Year 4 Sales $ % Change Year 3 620,000 54.83 280,000 82.35 340,000 100 224,000 193.10 190,000 152 Operating income 116,000 100 125,000 100 Net interest expense 12,000 17.64 8,000 10.39 Income before tax 104,000 152.94 117,000 100 36,000 52.94 40,000 51.95 68,000 100 77,000 100 3,000 4.62 7,000 10 65,000 100 70,000 100 Cost of goods sold Gross profit Selling, general, and administrative expenses Income tax expense Net Income Less: Noncontrolling interest in net income Net income attributable to Consolidated Business $ $ % Change 570,000 255,000 $ 315,000 180.95 80.95 100