Required:

1. Prepare common-size comparative statements of financial position for years 2018 and 2017.

(10)

RM Precise Company Comparative Statements of Financial Position As at 31 December 2018 and 2017 Assets RM Current Assets: Cash 79,000 Short-term investments 65,000 Accounts receivable 120,000 Merchandise inventory 250,000 Total current assets 514,000 42,000 96,000 100,000 265,000 503,000 Property, plant and equipment Store equipment Office equipment Buildings Land Total property, plant and equipment Total assets 400,000 350,000 45,000 50,000 625,000 675,000 100,000 100,000 1,170,000 1,175,000 RM1,684,000 RM1,678,000 Liabilities Current liabilities: Accounts payable Short-term notes payable Taxes payable Total current liabilities 164,000 75,000 26,000 265,000 190,000 90,000 12,000 292,000 Long-term liabilities: Notes payable (secured by mortgage on buildings) Total liabilities 400,000 665,000 420,000 712,000 Shareholders' equity Share capital Retained earnings Total shareholders' equity Total liabilities and equity 475,000 475,000 544,000 491,000 1,019,000 966,000 RM1,684,000 RM1,678,000