Convert these comparative balance sheets to common size statements. Using the common size statements, explain where the greatest changes occurred.
Convert these comparative balance sheets to common size statements. Using the common size statements, explain where the greatest changes occurred.
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....
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![Ithaca, Inc.
Comparative Balance Sheets
2016 and 2017
2017
2016
Cash
320,000
330,000
Accounts receivable
450,000 400,000
Inventory
400,000 550,000
Property, plant and equipment
1,300,000 1,300,000
Less: Accumulated depreciation
625,000 575,000
Total assets
1,845,000 2,005,000
Accounts payable
360,000 355,000
Long-term notes payable
380,000 450,000
Common stock
500,000
500,000
Retained earnings
605,000
700,000
Total liabilities and equity
1,845,000
2,005,000
Convert these comparative balance sheets to common size statements. Using
the common size statements, explain where the greatest changes occurred.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc47b8794-c2f2-4d04-9fad-4e8825beb778%2F5665d933-0383-4dd8-8685-8b835bdef0fe%2Ff6acue_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ithaca, Inc.
Comparative Balance Sheets
2016 and 2017
2017
2016
Cash
320,000
330,000
Accounts receivable
450,000 400,000
Inventory
400,000 550,000
Property, plant and equipment
1,300,000 1,300,000
Less: Accumulated depreciation
625,000 575,000
Total assets
1,845,000 2,005,000
Accounts payable
360,000 355,000
Long-term notes payable
380,000 450,000
Common stock
500,000
500,000
Retained earnings
605,000
700,000
Total liabilities and equity
1,845,000
2,005,000
Convert these comparative balance sheets to common size statements. Using
the common size statements, explain where the greatest changes occurred.
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