You are considering investing in Gidley Electronics. As part of your investigation of Gidley Electronics, you obtained the following balance sheets for the years ended December 31, 1996 and 1997. 1997 1996 Assets Current assets: Cash $ 110,000 $ 115,000 Short-term marketable securities 175,000 220,000 Accounts receivable 350,000 400,000 Inventory 290,000 240,000 Prepaid expenses 55,000 35,000 Total current assets $ 980,000 $1,010,000 Property, plant, and equipment 650,000 590,000 Less: Accumulated depreciation (165,000) (130,000) Total assets $1,465,000 $1,470,000 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 60,000 $ 50,000 Wages payable 15,000 20,000 Unearned revenue 50,000 35,000 Income taxes payable 55,000 35,000 Current portion of long-term debt 110,000 135,000 Total current liabilities $ 290,000 $ 275,000 Bonds payable 380,000 440,000 Common stock ($10 par value) 220,000 170,000 Additional paid-in capital 145,000 115,000 Retained earnings 430,000 470,000 Total liabilities and stockholders’ equity $1,465,000 $1,470,000 REQUIRED:

a. Compute the dollar change in each account from 1996 to 1997. Also compute the per¬ centage change in each account from 1996 to 1997.

b. Convert the balance sheets to common-size balance sheets. Also compute the percentage change in the common-size numbers of each account from 1996 to 1997.

c. Does the information provided in

(b) provide any additional information to that contained in (a)? Explain.