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3. Common-size balance sheet. The balance sheet data of South Corporation and North Corporation at December 31. 2012 are shown below (in thousand of pesos): North South ASSETS Current Assets Long-term investments Land, Building and equipment (net) Intangible assets Other assets 51,000 5,000 48,000 6.000 5.0 00 240,000 280,000 520,000 100.000 60.0 00 Total assets 115.000 1200.00 LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities P 15.000 25. 000 5.000 5,000 180,000 300.0 00 70,000 100,000 200,000 Long-term liabilities Deferred revenues Preferred stock Common stock Additional paid-in capital Retained eamings 30.000 25,000 10.00 185,000 165.0 00 Total liabilities and shareholder's equity 115.000 1.200.000 Required: 1. Prepare a comparative common-size balance sheet for South Corporation and North Corporation. 2. Based on your prepared common-size balance sheet, which company is better, financial position wise? Why?

3. Common-size balance sheet. The balance sheet data of South Corporation and North Corporation at December 31. 2012 are shown below (in thousand of pesos): North South ASSETS Current Assets Long-term investments Land, Building and equipment (net) Intangible assets Other assets 51,000 5,000 48,000 6.000 5.0 00 240,000 280,000 520,000 100.000 60.0 00 Total assets 115.000 1200.00 LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities P 15.000 25. 000 5.000 5,000 180,000 300.0 00 70,000 100,000 200,000 Long-term liabilities Deferred revenues Preferred stock Common stock Additional paid-in capital Retained eamings 30.000 25,000 10.00 185,000 165.0 00 Total liabilities and shareholder's equity 115.000 1.200.000 Required: 1. Prepare a comparative common-size balance sheet for South Corporation and North Corporation. 2. Based on your prepared common-size balance sheet, which company is better, financial position wise? Why?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Chapter_13.pdf - Foxit Reader E3 File Home Comment Fill & Sign View Form Protect Share Help O Tell me what you want to do.. a Find Chapter 13.pdf - Merge and split PDFS 2 Start 3. Common-size balance sheet. The balance sheet data of South Corporation and North Corporation at December 31, 2012 are shown below (in thousand of pesos): North South ASSETS Current Assets P 51,000 5,000 48.000 P 240,000 280,000 Long-term investments Land, Building and equipment (net) Intangible assets Other assets 520,000 100,000 6,000 5.0 00 60.0 00 Total assets 115,000 1,200,000 LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities P 15,000 25. 000 5,000 5,000 180,000 300.0 00 70,000 100,000 200,000 Long-term liabilities Deferred revenues Preferred stock Common stock Additional paid-in capital Retained eamings 30,000 25,000 10.00 185,000 165.0 00 Total liabilities and shareholder's equity 115.000 1,200,000 Required: 1. Prepare a comparative common-size balance sheet for South Corporation and North Corporation. 2. Based on your prepared common-size balance sheet, which company is better, financial position wise? Why? 11 3/ 39 71.75%
Transcribed Image Text:Chapter_13.pdf - Foxit Reader E3 File Home Comment Fill & Sign View Form Protect Share Help O Tell me what you want to do.. a Find Chapter 13.pdf - Merge and split PDFS 2 Start 3. Common-size balance sheet. The balance sheet data of South Corporation and North Corporation at December 31, 2012 are shown below (in thousand of pesos): North South ASSETS Current Assets P 51,000 5,000 48.000 P 240,000 280,000 Long-term investments Land, Building and equipment (net) Intangible assets Other assets 520,000 100,000 6,000 5.0 00 60.0 00 Total assets 115,000 1,200,000 LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities P 15,000 25. 000 5,000 5,000 180,000 300.0 00 70,000 100,000 200,000 Long-term liabilities Deferred revenues Preferred stock Common stock Additional paid-in capital Retained eamings 30,000 25,000 10.00 185,000 165.0 00 Total liabilities and shareholder's equity 115.000 1,200,000 Required: 1. Prepare a comparative common-size balance sheet for South Corporation and North Corporation. 2. Based on your prepared common-size balance sheet, which company is better, financial position wise? Why? 11 3/ 39 71.75%
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