Question

Just Dew It Corporation reports the following balance sheet information.

  

Prepare the common-size balance sheet for Just Dew It. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

  

Assets
  Current assets
      Cash $ 8,250 %
      Accounts receivable 34,500 %
      Inventory 58,500 %



        Total $ 101,250 %

  Fixed assets
      Net plant and equipment $ 273,750 %



  Total assets $ 375,000 %



Liabilities and Owners’ Equity
  Current liabilities
      Accounts payable $ 43,500 %
      Notes payable 29,625 %



        Total $ 73,125 %
  Long-term debt $ 45,000 %
  Owners' equity
      Common stock and paid-in surplus $ 60,000 %
      Accumulated retained earnings 196,875 %



        Total $ 256,875 %



  Total liabilities and owners' equity $ 375,000

Answer 1

Under preparation of common-size balance sheet;each item is represented as a % of total assets/total liabilities and owner's equity.For example;Accounts Payable would be =(43500/375000)=11.6% and so on.

Assets
Current assets
Cash	8250	2.2%
Accounts receivable	34500	9.2%
Inventory	58500	15.6%
Total	101250	27%
Fixed assets
Net plant and equipment	273750	73%
Total assets	375000	100%
Liabilities and owners equity
Current Liabilities
Accounts Payable	43500	11.6%
Notes Payable	29625	7.9%
Total	73125	19.5%
Long term debt	45000	12%
Owners equity
Common stock and paid-in surplus	60000	16%
Accumulated retained earnings	196875	52.5%
Total	256875	68.5%
Total Liabilities and owners equity	375000	100%