Preparing a Common-Size Balance Sheet
Company A reported the following balance sheet data for the most recent three years:
|
|
Year 3
|
Year 2
|
Year 1
|
|
Cash
|
$ 2,000
|
$ 2,000
|
$ 1,000
|
|
Accounts receivable
|
5,000
|
11,000
|
5,000
|
|
Inventory
|
10,000
|
16,000
|
10,000
|
|
Current assets
|
$17,000
|
$29,000
|
$16,000
|
|
Property, plant, and equipment (net)
|
50,000
|
45,000
|
40,000
|
|
Total assets
|
$67,000
|
$74,000
|
$56,000
|
|
Accounts payable
|
$ 9,000
|
$14,000
|
$ 7,000
|
|
Short-term debt
|
5,000
|
9,000
|
5,000
|
|
Current liabilities
|
$14,000
|
$23,000
|
$12,000
|
|
Long-term debt
|
20,000
|
25,000
|
20,000
|
|
Total liabilities
|
$34,000
|
$48,000
|
$32,000
|
|
Paid-in capital
|
5,000
|
5,000
|
5,000
|
|
Retained earnings
|
28,000
|
21,000
|
19,000
|
|
Total liabilities and equities
|
$67,000
|
$74,000
|
$56,000
|
Prepare the Asset section of a common-size balance sheet for each year.