The following data are taken from the comparative balance sheet prepared for Route 13 Company. Sales for

Question:

The following data are taken from the comparative prepared for Route 13 Company.

The following data are taken from the comparative balance sheet

Sales for Year 2 were $1,250,000. Sales for Year 1 were $800,000.
1. Prepare a common-size balance sheet for Year 1 and Year 2.
2. Overall, Route 13 Company is less efficient at using its assets to generate sales in Year 2 than in Year 1. What asset is responsible for this decreased efficiency?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...