Prepare the Common size statements using Excel ( Make sure you use the functions). Save as an Excel document.
Problem 1
1. Using the following balance sheet, prepare a common size balance sheet:
| Assets |
|
|
|
Liabilities and stockholders' equity |
| Current assets |
|
|
Current liabilities |
|
|
Cash |
4 |
|
|
Accounts payable |
28 |
|
Short-term investments |
9 |
|
|
Current portion of long-term debt |
12 |
|
Accounts receivable |
32 |
|
Total current liabilities |
40 |
|
Inventory |
41 |
|
Long-term liabilities |
|
|
Prepaid expenses |
2 |
|
|
Long-term debt |
48 |
|
Deferred taxes, current |
7 |
|
Total liabilities |
88 |
| Total current assets |
95 |
|
|
|
|
|
|
|
|
|
|
|
| Long-term assets |
|
|
Stockholders' equity |
|
|
Property & equipment |
53 |
|
|
Common stock and PIC |
51 |
|
Goodwill |
12 |
|
|
Retained earnings |
30 |
|
Long-term investments |
8 |
|
|
|
|
|
Other assets |
1 |
|
Total stockholders' equity |
81 |
| Total assets |
169 |
|
Total liabilities and equity |
169 |
Problem 2
Using the following information prepare a common size income statement:
Net sales $9,500
Cost of goods sold 5,900
Gross profit $3,600
General and administrative expenses 1,250
Selling expenses 920
Operating profit $1,430
Income tax expense 460
Net profit $970