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Convert these comparative balance sheets to common size statements. Using the common size statements, explain where the greatest changes occurred.

Convert these comparative balance sheets to common size statements. Using the common size statements, explain where the greatest changes occurred.

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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Ithaca, Inc. Comparative Balance Sheets 2016 and 2017 2017 2016 Cash 320,000 330,000 Accounts receivable 450,000 400,000 Inventory 400,000 550,000 Property, plant and equipment 1,300,000 1,300,000 Less: Accumulated depreciation 625,000 575,000 Total assets 1,845,000 2,005,000 Accounts payable 360,000 355,000 Long-term notes payable 380,000 450,000 Common stock 500,000 500,000 Retained earnings 605,000 700,000 Total liabilities and equity 1,845,000 2,005,000 Convert these comparative balance sheets to common size statements. Using the common size statements, explain where the greatest changes occurred.
Transcribed Image Text:Ithaca, Inc. Comparative Balance Sheets 2016 and 2017 2017 2016 Cash 320,000 330,000 Accounts receivable 450,000 400,000 Inventory 400,000 550,000 Property, plant and equipment 1,300,000 1,300,000 Less: Accumulated depreciation 625,000 575,000 Total assets 1,845,000 2,005,000 Accounts payable 360,000 355,000 Long-term notes payable 380,000 450,000 Common stock 500,000 500,000 Retained earnings 605,000 700,000 Total liabilities and equity 1,845,000 2,005,000 Convert these comparative balance sheets to common size statements. Using the common size statements, explain where the greatest changes occurred.
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