Problem: Following are the balance sheets for Howard’s Hammocks for December 31, 2009 and 2008.
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HOWARD'S HAMMOCKS COMPARATIVE BALANCE SHEETS
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2009
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2008
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Cash
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$130,000
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$110,000
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Accounts receivable
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130,000
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120,000
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Inventory
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225,000
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215,000
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Prepaid insurance
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25,000
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30,000
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Total current assets
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$510,000
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$475,000
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Long-term investments
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$110,000
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$75,000
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Land
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200,000
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175,000
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Property and equipment
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215,000
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95,000
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Accumulated depreciation
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(105,000)
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(80,000)
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$420,000
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$265,000
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Total assets
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$930,000
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$740,000
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Accounts payable
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$60,000
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$50,000
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Payroll payable
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10,000
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8,000
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Taxes payable
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10,000
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9,000
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Total current liabilities
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$80,000
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$67,000
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Notes payable
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100,000
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80,000
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Capital stock
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500,000
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400,000
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Retained earnings
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250,000
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193,000
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Total liabilities and stockholders' equity
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$930,000
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740,000
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Required:
Using the preceding income statement figures, prepare common-size statements for 2009 and 2008.