Presented below is the comparative balance sheet for Novak Company.AssetsCashNovak CompanyComparative Balance SheetAs of December 31Accounts receivable (net)Short-term investmentsInventoriesPrepaid expensesPlant & equipmentAccumulated depreciationLiabilities and Stockholders' EquityAccounts payableAccrued expensesBonds payableCommon stockRetained earningsDecember 312026$180,100220,200267,5001,055,10024,8002,585,300(1,004,300)$3,328,700$49,600171,200445,9002,108,000554,000$3,328,7002025$274,700155,800148,900970,30024,8001,943,900(749,000)$2,769,400$75,300199,000189,2001,768,300537,600$2,769,400 and stockholders' equity. (Round percentages to 2 decimal places, e.g. 2.25%.)NOVAK COMPANYComparative Balance SheetDecember 31, 2026 and 2025CashAssetsAccounts receivable(net)Short-terminvestmentsInventoriesPrepaid expensesPlant and equipmentAccumulateddepreciationTotalCommon stockRetained earningsTotal$180,100Touthook and Madis220,200267,5001,055,10024,800Liabilities and Stockholders' EquityAccounts payableAccrued expensesBonds payable2,585,300(1,004,300)$3,328,700$49,600171,200445,9002,108,000554,000$3,328,7002026December 31%%%%%%%%%%$274,700%155,800148,900970,300% $2,769,40024,8001,943,900(749,000)$75,300199,000189,2001,768,300537,600% $2,769,4002025%%%%8%28%%%%%

In this question, we need to compute the percentages of each item in the balance sheet compared to the total of balance sheet.We need to compute this for both 2025 and 2026Calculation of percentage for cash is as belowFor 2026 = $ 180,100 / $ 33,28,700 = 5.41 %For 2025 = $ 274,700 / $ 27,69,400 = 9.92 %Each item need to be calculated as belowNOVAK COMPANYComparative Balance SheetDecember 31, 2026 and 2025 20262025ASSETSCash $ 1,80,1005.41% $ 2,74,7009.92%Accounts Receivable (net) $ 2,20,2006.62% $ 1,55,8005.63%Short-term Investments $ 2,67,5008.04% $ 1,48,9005.38%Inventories $ 10,55,10031.70% $ 9,70,30035.04%Prepaid Expenses $ 24,8000.75% $ 24,8000.90%Plant & Equipments $ 25,85,30077.67% $ 19,43,90070.19%Accumulated Depreciation $ -10,04,300-30.17% $ -7,49,000-27.05%Total $ 33,28,700100.00% $ 27,69,400100.00%Liabilities and Stockholders EquityAccounts Payable $ 49,6001.49% $ 75,3002.72%Accrued Expenses $ 1,71,2005.14% $ 1,99,0007.19%Bonds Payable $ 4,45,90013.40% $ 1,89,2006.83%Common Stock $ 21,08,00063.33% $ 17,68,30063.85%Retained Earnings $ 5,54,00016.64% $ 5,37,60019.41%Total $ 33,28,700100.00% $ 27,69,400100.00%

Business

Accounting

Assets Cash Accounts receivable (net) Short-term investments Inventories Prepaid expenses Plant and equipment Accumulated depreciation Total $180,100 Total 220,200 267,500 1,055,100 24,800 2,585,300 (1,004,300) $3,328,700 Liabilities and Stockholders' Equity Accounts payable $49,600 Accrued expenses Bonds payable Common stock Retained earnings 171,200 445,900 2,108,000 554,000 $3,328,700 NOVAK COMPANY Comparative Balance Sheet December 31, 2026 and 2025 2026 December 31 % % % % 96 96 96 96 96 % 96 96 96 $274,700 155,800 148,900 970,300 24,800 1,943,900 (749,000) $2,769,400 $75,300 199,000 189,200 1,768,300 537,600 % $2,769,400 2025 96 96 96 %6 96 96 96 % 96 % 96 96 %

Assets Cash Accounts receivable (net) Short-term investments Inventories Prepaid expenses Plant and equipment Accumulated depreciation Total $180,100 Total 220,200 267,500 1,055,100 24,800 2,585,300 (1,004,300) $3,328,700 Liabilities and Stockholders' Equity Accounts payable $49,600 Accrued expenses Bonds payable Common stock Retained earnings 171,200 445,900 2,108,000 554,000 $3,328,700 NOVAK COMPANY Comparative Balance Sheet December 31, 2026 and 2025 2026 December 31 % % % % 96 96 96 96 96 % 96 96 96 $274,700 155,800 148,900 970,300 24,800 1,943,900 (749,000) $2,769,400 $75,300 199,000 189,200 1,768,300 537,600 % $2,769,400 2025 96 96 96 %6 96 96 96 % 96 % 96 96 %

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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