Express the Following Balance Sheets for Safety Company in Common-Size

question 56

Essay

Express the following balance sheets for Safety Company in common-size percentages.
Safety Company Balance Sheets
December 31, 2017 and 2016

$\begin{array}{|l|c|c|}\hline&2017&2016\\\hline \text { Assets } & & \\\hline \text { Cash } & \$ 43,000 & \$ 22,000 \\\hline \text { Accounts receivable } & 38,000 & 42,000 \\\hline \text { Merchandise inventory } & 61,000 & 52,000 \\\hline \text { Prepaid insurance } & 6,000 & 9,000 \\\hline \text { Long-term investments } & 49,000 & 20,000 \\\hline \text { Plant assets (net) } & \underline{218,000} & \underline{218,000} \\\hline \text { Total assets } & \$ 415,000 & \underline{\$ 363,000} \\\hline & & \\\hline \text { Liabilities and Equity } & & \\\hline \text { Current liabilities } & \$ 62,000 & \$ 75,000\\\hline \end{array}$ $$\begin{array} {| l | c | c| } \hline \text { Current liabilities } & \$ 62,000 & \$ 75,000 \\\hline \text { Long-term liabilities } & 45,000 & 36,000 \\\hline \text { Common stock } & 150,000 & 150,000 \\\hline \text { Retained earnings } & 158,000 & 102,000 \\\hline \text { Total liabilities and equity } & \$ 415,000 & \$ 363,000 \\\hline\end{array}$$

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Definitions:

Synchronicity

Synchronicity is a concept introduced by Carl Jung that refers to events that are meaningfully related, yet lacking a causal relationship, suggesting a deeper order in the universe.

Inter-related

Having a mutual or reciprocal relation or connection, where one element affects or depends on another.

Economic Determinism

The theory that economic forces and material interests shape societal structures, values, and practices.

Scientific Method

A systematic procedure for collecting and analyzing evidence crucial in the advancement of science, involving observation, hypothesis formulation, experimentation, and conclusion.