Preparing Common Size Statements The financial statements for Burch Industries follow:

Required:

Hide 1. Prepare common size income statements to be used for horizontal analysis for Burch for 2011 to 2013. Enter your answers in percentage terms, rounded to two decimal places, and do not include the "%" sign with your answer. For example, "100.00" or "28.72". Utilize 2011 as the base year for both 2012 and 2013. You do not need to include the actual dollar amounts shown above.

Burch Industries Consolidated Income Statements For the Year ended: December 31, 2013 December 31, 2012 December 31, 2011 Revenues % % % Costs and expenses: Cost of goods sold % % % Selling and administrative % % % Interest % % % Other expenses (income) % % % Total costs and expenses % % % Income before income taxes % % % Income taxes % % % Net income % % % Hide 2. Prepare common size balance sheets to be used for vertical analysis for 2013 and 2012. Enter your answers in percentage terms, rounded to two decimal places, and do not include the "%" sign with your answer. For example, "100.00" or "28.72". You do not need to include the actual dollar amounts shown above. If an answer box does not require an entry enter "0".

Burch Industries Consolidated Balance Sheet ASSETS December 31, 2013 December 31, 2012 Current assets: Cash and equivalents % % Accounts receivable, less allowance for doubtful accounts of $19,447 and $20,046 % % Inventories % % Deferred income taxes % % Prepaid expenses % % Total current assets % % Property, plant, and equipment % % Less accumulated depreciation % % Net property, plant, and equipment % % Goodwill % % Other assets % % Total assets % % LIABILITIES AND STOCKHOLDERS' EQUITY December 31, 2013 December 31, 2012 Current liabilities: Current portion of long-term debt % % Notes payable % % Accounts payable % % Accrued liabilities % % Income taxes payable % % Total current liabilities % % Long-term debt % % Noncurrent deferred income taxes % % Other noncurrent liabilities % % Commitments and contingencies % % Redeemable preferred stock % % Total liabilities % % Stockholders' equity: Common stock at stated value: Class A convertible-26,691 and 26,919 shares outstanding % % Class B-49,161 and 48,591 shares outstanding % % Capital in excess of stated value % % Treasury stock (common at cost) % % Retained earnings % % Total stockholders' equity % % Total liabilities and stockholders' equity % %

Burch Industries Consolidated Income Statements (in thousands, except per share data) Year ended December 31 2012 2013 2011 $3,930,984. $3,405,211 Revenues $3,003,610 Costs and expenses Cost of goods sold $2,386,993 $2,089,089 $1,850,530 Selling and administrative 922,261 761,498 664,061 25,739 30,665 27,316 nterest Other expenses (income) 1,475 2,141 (43 Total costs and expenses $3,336,468 $2,883,393 $2,541,864 521,818 Income before income taxes 594,516 461,746 Income taxes 229,500 192,600 174,700 365,016 329,218 287,046 Net income Burch Industries. Consolidated Balance Sheets (in thousands December 31, 2013 2012 ASSETS Current assets: Cash and equivalents 291,284 260,050 Accounts receivable, less allowance for doubtfu accounts of $19,447 and $20,046 667,547 596,018 Inventories 592,986 471,202 Deferred income taxes 26,378 27,511 Prepaid expenses 42,452 32,977 Total current assets $1,620,647 $1,387,758 Property, plant, and equipment 571,032 497,795 Less accumulated depreciation 93,037 (151,758) 377,995 346,037 et property, plant, and equipment 157,894 110,363 Other assets 30,927 28,703 Total assets $2,187,463 $1,872,861 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: 52,985 Cument portion of long-term debt 3,652 Notes payable 108, 165 105,696 Accounts payable 135,70 134,729 Accrued liabilities 138,563 134,089 Income taxes payable 17,150 42,422 Total current liabilities 452,564 420,588 Long-term debt 15,033 77,022 Noncurrent defemed income taxes 29,965 27,074 Other noncurrent liabilities 43,575 23,728 Commitments and contingencies Redeemable preferred stock 300 300 Total liabilities 541,437 548,712 Stockholders' equity Common stock at stated value: Class A convertible-26,691 and 26,919 shares outstanding 159 161 Class B-49,161 and 48,591 shares outstanding 2,720 2,716 Capital in excess of stated value 108,451 93,799 Treasury stock (common at cost) (7,790 6,860) Retained earnings 1,542,486 1,234,333 Total stockholders' equity $1,646,026 $1,324,149 Total liabilities and stockholders' equity $2,187,463 872,861