Ratlos from Comparative and Common-Size Data Consider the following financial statements for Waverly Company. During 2013, management obtained additional bond financing to enlarge its production facilities. The company faced higher production costs during the year for such things as fuel, materials, and freight. Because of temporary government price controls, a planned price increase on products was delayed several months. As a holder of both common and preferred stock, you decide to analyze the financial statements: WAVERLY COMPANY Balance Sheets (Thousands of Dollars) Dec. 31, 2013 Dec. 31, 2012 Assets Cash and cash equivalents Accounts receivable (net) Irnventory Prepaid expenses Plant and other assets (net) Total Assets $19,000 56,000 121,000 21,000 471,000 $638,000 $13,000 44,000 106,000 14,000 411,000 588,000 Liabilities and Stockholders' Equity Current liabilities 1096 Bonds payable 9% Preferred stock, $50 Par Value Common stock, $10 Par Value Retained earnings Total Liabilities and Stockholders' Equity $91,000 226,000 76,000 201,000 94,000 $688,000 $83,000 161,000 76,000 200,000 68,000 $588,000