Sanborn Corporation's condensed comparative income statements for 2012 and 2011 appear below. The corporation's condensed comparative balance sheets for 2012 and 2011 appear on the next page(attached document). Required 1. Prepare schedules showing the amount and percentage changes from 2011to 2012 for the comparative income statements and the balance sheets. 2. Prepare common-size income statements and balance sheets for 2011 and 2012. 3. Comment on the results in requirements 1 and 2 by identifying favorable and unfavorable changes in the components and composition of the statements.

Sanborn Corporation Comparative Balance Sheets December 31, 2012 and 2011 2012 2011 Assets Cash $81,200 $40,800 Accounts receivable (net) 235,600 229,200 Inventory 574,800 594,800 Property, plant, and equipment(net) 750,000 720,000 $1,641,600 $1,584,800 $267,600 $477,200 Notes payable (short-term) 200,000 400,000 Bonds payable 400,000 Common stock, $10 par value 400,000 400,000 Retained earnings 374,000 307,600 $1,641,600 $1,584,800 Total assets Liabilities and Stockholders' Equity Accounts payable Total liabilities and stockholders' equity