Problem 3-18 Common-Size and Common-Base-Year Financial Statements 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 $ 8,264 20,953 37,322 $ 66,539 $ 10, 204 23,437 42,297 $ 75,938 opp opp $ * 215,870 $282, 409 243,840 $ 319,778 Assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total 1 $ 41,398 17,964 $ 59,362 24,500 $ 46,384 17,535 $ 63,919 31,500 100 $ de 38,500 160,047 $198,547 $282, 409 39,700 184,659 $ 224,359 $ 319,778 Total liabilities and owners' equity Problem 3-18 Common-Size and Common-Base-Year Financial Statements 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 $ 8,264 20,953 37,322 $ 66,539 $ 10, 204 23,437 42,297 $ 75,938 opp opp $ * 215,870 $282, 409 243,840 $ 319,778 Assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total 1 $ 41,398 17,964 $ 59,362 24,500 $ 46,384 17,535 $ 63,919 31,500 100 $ de 38,500 160,047 $198,547 $282, 409 39,700 184,659 $ 224,359 $ 319,778 Total liabilities and owners' equity
