Chapter 2, Problem 3P

a.

Summary Introduction

Adequate information:Financial statements of WPWD.

To Fill:The blanks on the financial statements of WPWD.

Introduction:The blanks given can be filled with the formulas used to create the given statement in excel. formula applied can be checked in the next “show formula” excel file separately.

b.

Summary Introduction

Adequate information:Financial statements of WPWD.

To compute: The common-size income statement and balance sheet using your answers from option A given above.

Introduction:Common-size income statement can be computed by dividing each line item (for example, gross profit, operating income and sales and marketing expenses) by the top line (sales). Each item is then expressed as a percentage of sales.

A common-size balance sheet is a balance sheet that displays both the numeric value and relative percentage for total assets, total liabilities, and equity accounts, etc. here total assets are used as a base.