Reference no: EM131536020

Question: 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