Sanderson Company’s year end balance sheets follow. Express the balance sheets in common size percents. Round amounts to the nearest one tenth of a percent. Analyze and comment on the results.
|
At December 31 |
2012 |
2011 |
2010 |
|
Assets |
|
|
|
|
Cash |
$ 30,800 |
$ 35,625 |
$ 36,800 |
|
Accounts receivable, net |
88,500 |
62,500 |
49,200 |
|
Merchandise inventory |
111,500 |
82,500 |
53,000 |
|
Prepaid expenses |
9,700 |
9,375 |
4,000 |
|
Plant assets, net |
277,500 |
255,000 |
229,500 |
|
Total assets |
$518,000 |
$445,000 |
$372,500 |
|
Liabilities and Equity |
|
|
|
|
Accounts payable |
$128,900 |
$ 75,250 |
$ 49,250 |
|
Long term notes payable secured by |
|
|
|
|
mortgages on plant assets |
97,500 |
102,500 |
82,500 |
|
Common stock, $10 par value |
162,500 |
162,500 |
162,500 |
|
Retained earnings |
129,100 |
104,750 |
78,250 |
|
Total liabilities and equity |
$518,000 |
$445,000 |
$372,500 |