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Montana Corporation Common Sized Balance Sheet December 31, 2006 and 2005 2006 2005 Assets Current assets: Cash 3.24% 4.23% Accounts receivable (net) 27.06% 25.08% Inventory 30.29% 29.97% Prepaid expenses 1.76% 1.63% Total current assets 62.35% 60.91% Property, plant, and equipment Land and building 17.94% 19.22% Machinery and equipment 50.59% 50.81% Total property, plant, and equipment Less accumulated depreciation 68.53% 70.03% 33.24% 33.22% Net property, plant, and equipment 35.29% 36.81% Other assets 2.35% 2.28% Total assets 100.00% 100.00% Liabilities and Stockholders' Equity Current liabilities Accounts payable 19.41% 17.92% Notes payable 0.00% 7.49% Dividends payable 0.59% 0.00% Income taxes payable 0.88% 1.63% Total current liabilities 20.88% 27.04% Long-term debt 22.06% 13.68% Total liabilities 42.94% 40.72% Stockholders' equity: Common stock ($1 par) 2.94% 3.26% Paid-in capital in excess of par 2.94% 5.21% Retained earnings Total stockholders' equity 49.41% 50.81% 57.06% 59.28% Total liabilities and stockholders' equity 100.00% 100.00%

Montana Corporation Common Sized Balance Sheet December 31, 2006 and 2005 2006 2005 Assets Current assets: Cash 3.24% 4.23% Accounts receivable (net) 27.06% 25.08% Inventory 30.29% 29.97% Prepaid expenses 1.76% 1.63% Total current assets 62.35% 60.91% Property, plant, and equipment Land and building 17.94% 19.22% Machinery and equipment 50.59% 50.81% Total property, plant, and equipment Less accumulated depreciation 68.53% 70.03% 33.24% 33.22% Net property, plant, and equipment 35.29% 36.81% Other assets 2.35% 2.28% Total assets 100.00% 100.00% Liabilities and Stockholders' Equity Current liabilities Accounts payable 19.41% 17.92% Notes payable 0.00% 7.49% Dividends payable 0.59% 0.00% Income taxes payable 0.88% 1.63% Total current liabilities 20.88% 27.04% Long-term debt 22.06% 13.68% Total liabilities 42.94% 40.72% Stockholders' equity: Common stock ($1 par) 2.94% 3.26% Paid-in capital in excess of par 2.94% 5.21% Retained earnings Total stockholders' equity 49.41% 50.81% 57.06% 59.28% Total liabilities and stockholders' equity 100.00% 100.00%

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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Provided the common-sized balance sheet of Montana Corporation give at least three (3) significant changes that you noticed in its financial position from the Year 2005 to 2006. Explain briefly your observations.

Montana Corporation Common Sized Balance Sheet December 31, 2006 and 2005 2006 2005 Assets Current assets: Cash 3.24% 4.23% Accounts receivable (net) 27.06% 25.08% Inventory 30.29% 29.97% Prepaid expenses 1.76% 1.63% Total current assets 62.35% 60.91% Property, plant, and equipment Land and building 17.94% 19.22% Machinery and equipment 50.59% 50.81% Total property, plant, and equipment Less accumulated depreciation 68.53% 70.03% 33.24% 33.22% Net property, plant, and equipment 35.29% 36.81% Other assets 2.35% 2.28% Total assets 100.00% 100.00% Liabilities and Stockholders' Equity Current liabilities Accounts payable 19.41% 17.92% Notes payable 0.00% 7.49% Dividends payable 0.59% 0.00% Income taxes payable 0.88% 1.63% Total current liabilities 20.88% 27.04% Long-term debt 22.06% 13.68% Total liabilities 42.94% 40.72% Stockholders' equity: Common stock ($1 par) 2.94% 3.26% Paid-in capital in excess of par 2.94% 5.21% Retained earnings Total stockholders' equity 49.41% 50.81% 57.06% 59.28% Total liabilities and stockholders' equity 100.00% 100.00%
Transcribed Image Text:Montana Corporation Common Sized Balance Sheet December 31, 2006 and 2005 2006 2005 Assets Current assets: Cash 3.24% 4.23% Accounts receivable (net) 27.06% 25.08% Inventory 30.29% 29.97% Prepaid expenses 1.76% 1.63% Total current assets 62.35% 60.91% Property, plant, and equipment Land and building 17.94% 19.22% Machinery and equipment 50.59% 50.81% Total property, plant, and equipment Less accumulated depreciation 68.53% 70.03% 33.24% 33.22% Net property, plant, and equipment 35.29% 36.81% Other assets 2.35% 2.28% Total assets 100.00% 100.00% Liabilities and Stockholders' Equity Current liabilities Accounts payable 19.41% 17.92% Notes payable 0.00% 7.49% Dividends payable 0.59% 0.00% Income taxes payable 0.88% 1.63% Total current liabilities 20.88% 27.04% Long-term debt 22.06% 13.68% Total liabilities 42.94% 40.72% Stockholders' equity: Common stock ($1 par) 2.94% 3.26% Paid-in capital in excess of par 2.94% 5.21% Retained earnings Total stockholders' equity 49.41% 50.81% 57.06% 59.28% Total liabilities and stockholders' equity 100.00% 100.00%
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