In addition to common-size financial statements, common-base year financial statements are often used. Common-base year financial statements are constructed by dividing the current year account value by the base year account value. Thus, the result shows the growth rate in the account. Construct the common-size balance sheet and common-base year balance sheet for the company. Use 2018 as the base year. (Do not round intermediate calculations. Enter your common-size answers as a percent and your common base year answers as a times. Round your common size answers to 2 decimal places, e.g., 32.16 and common-base year answers to 4 decimal places, e.g., 32.1616.) JARROW CORPORATION Common-base 2018 Common-size 2019 Common-size year Assets Current assets Cash Accounts receivable $ 8,214 % $ 10,154 % 20,853 % 23,337 % Inventory Total 37,222 % 42,197 % $ 66,289 % $ 75,688 % Fixed assets Net plant and equipment $ 215,770 % $ 243,740 % Total assets $ 282,059 % $ 319,428 % Liabilities and Owners' Equity Current liabilities Accounts payable $ 41,298 % $ 46,284 % Notes payable 17,864 % 17.435 % Total $ 59,162 % $ 63,719 % Long-term debt $ 24,400 % $ 31.400 % Owners' equity Common stock and paid-in surplus $ 38.400 % $ 39.600 % Retained earnings 160.097 % 184.709 % Total $ 198,497 % $ 224.309 % Total liabilities and owners' equity $ 282,059 % $ 319,428 %
In addition to common-size financial statements, common-base year financial statements are often used. Common-base year financial statements are constructed by dividing the current year account value by the base year account value. Thus, the result shows the growth rate in the account. Construct the common-size balance sheet and common-base year balance sheet for the company. Use 2018 as the base year. (Do not round intermediate calculations. Enter your common-size answers as a percent and your common base year answers as a times. Round your common size answers to 2 decimal places, e.g., 32.16 and common-base year answers to 4 decimal places, e.g., 32.1616.) JARROW CORPORATION Common-base 2018 Common-size 2019 Common-size year Assets Current assets Cash Accounts receivable $ 8,214 % $ 10,154 % 20,853 % 23,337 % Inventory Total 37,222 % 42,197 % $ 66,289 % $ 75,688 % Fixed assets Net plant and equipment $ 215,770 % $ 243,740 % Total assets $ 282,059 % $ 319,428 % Liabilities and Owners' Equity Current liabilities Accounts payable $ 41,298 % $ 46,284 % Notes payable 17,864 % 17.435 % Total $ 59,162 % $ 63,719 % Long-term debt $ 24,400 % $ 31.400 % Owners' equity Common stock and paid-in surplus $ 38.400 % $ 39.600 % Retained earnings 160.097 % 184.709 % Total $ 198,497 % $ 224.309 % Total liabilities and owners' equity $ 282,059 % $ 319,428 %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
am. 124.
Transcribed Image Text:In addition to common-size financial statements, common-base year financial statements
are often used. Common-base year financial statements are constructed by dividing the
current year account value by the base year account value. Thus, the result shows the
growth rate in the account.
Construct the common-size balance sheet and common-base year balance sheet for the
company. Use 2018 as the base year. (Do not round intermediate calculations. Enter
your common-size answers as a percent and your common base year answers as a
times. Round your common size answers to 2 decimal places, e.g., 32.16 and
common-base year answers to 4 decimal places, e.g., 32.1616.)
JARROW CORPORATION
Common-base
2018
Common-size
2019
Common-size
year
Assets
Current assets
Cash
Accounts receivable
$
8,214
% $
10,154
%
20,853
%
23,337
%
Inventory
Total
37,222
%
42,197
%
$
66,289
% $
75,688
%
Fixed assets
Net plant and equipment
$
215,770
%
$
243,740
%
Total assets
$
282,059
% $
319,428
%
Liabilities and Owners' Equity
Current liabilities
Accounts payable
$
41,298
%
$
46,284
%
Notes payable
17,864
%
17.435
%
Total
$
59,162
%
$
63,719
%
Long-term debt
$
24,400
%
$
31.400
%
Owners' equity
Common stock and paid-in surplus
$
38.400
%
$
39.600
%
Retained earnings
160.097
%
184.709
%
Total
$
198,497
% $
224.309
%
Total liabilities and owners' equity
$
282,059
% $
319,428
%
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