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