Analyze the Following Common Size Balance Sheet

question 26

Essay

Analyze the following common size balance sheet: $\begin{array}{lcl}&2015&2014\\\text { Current assets: }\\\text { Cash } & 1 \% & 16 \% \\\text { Accounts receivable } & 24 & 18 \\\text { Inventory } & \underline{35} & \underline{30}\\\text { Total current assets }&620\%&64\%\\\\\text { Property, plant and equipment } & 37 & 26 \\\text { Other assets } & \underline{3} & \underline{10} \\\text { Total assets } & \underline{\underline{100 \%}} & \underline{100 \%}\\\\\text { Current liabilities: }\\\text { Accounts payable } & 29 \% & 27 \% \\\text { Short-term debt } & \underline{23} & \underline{33}\\\text { Total current liabilities }&52\%&60\%\\\\\text { Long-term debt } & {22} & {17}\\\text { Total liabilities } &{74} \%&{77 \%} \\\\\text { Common stock and paid in capital } & 9 & 10 \\\text { Retained earnings } & 17 & 13 \\\text { Total stockholders' equity } & \overline{26 \%} & \underline{23} \% \\\text { Total liabilities and stockholders' equity } & \overline{100 \%} & 100 \%\end{array}$

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Definitions:

Morphological Convergence

Evolutionary pattern in which similar body parts (analogous structures) evolve separately in different lineages.

Theory of Uniformity

A principle stating that the same natural laws and processes that operate in the universe now, have always operated in the universe in the past and apply everywhere.

6,000 Years Old

An age designation, often used in historical or geological context, referring to something that is approximately six millennia old.

Reproductive Parts

Reproductive parts are the organs of an organism that are involved in the production of offspring.