How do you compute the component percentages for the balance sheet? The comparat

Question

How do you compute the component percentages for the balance sheet?

The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance sheet: Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (10% interest) Common stock ($5 par value, 6,000 shares outstanding) Retained earnings Total liabilities and stockholders' equity $190,000 112,000 78,000 56,000 $ 167,000 100,000 67,000 53,000 14,000 4,000 $ 10,000 8,000 $ 14,000 $ 4,000 14,000 40,000 45,000 $ 7,000 18,000 34,000 38,000 $ 16,000 45,000 30,000 2,000 $ 103,000 $ 17000 45,000 30,000 5,000 $ 97000

Explanation / Answer

Prince Company Balance Sheet At December 31, Year2 Amount Component Percentage Year-2 Cash $4,000 3.88% Account Receivable( Net) $14,000 13.59% Inventory $40,000 38.83% Property & Equipment $45,000 43.69% Total Asset ( the Base Amount) $103,000 100.00% Current Liabilities $16,000 15.53% Long term Liabilities ( 10% Interest) $45,000 43.69% Common Stock ($5 par Value, 6000 Share Outstanding) $30,000 29.13% Retained Earning $12,000 11.65% Total liabilities and Owner 's Equity ( The Base Amount) $103,000 100.00%

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