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BBA 3301 Unit V Assignment
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Question 1. (30 points total) Use this balance sheet and income statement from Carver Enterprises to
complete parts a and b:
a. (15 points) Prepare a common size balance sheet for Carver Enterprises. Complete the commonsize balance sheet: (Round to one decimal place.)
Common−Size Balance Sheet
Cash and marketable securities
2013
$
490
1.5 %
Accounts receivable
5,990
18.1
Inventories
9,550
28.9
BBA 3301 Unit V Assignment
Current assets
$
Net property plant and equipment
16,030
48.5 %
17,030
51.5
Total assets
$
33,060
100 %
Accounts payable
$
7,220
2.2 %
Short−term debt
6,800
Current liabilities
$
14,020
Long−term liabilities
7,010
Total liabilities
$
20.6
42.4 %
21.5
21,030
63.6 %
Total owners’ equity
12,030
36.4
Total liabilities and owners’ equity $
33,060
100 %
b. (15 points) Prepare a common-size income statement for Carver Enterprises. Complete the
common-size income statement: (Round to one decimal place.)
Common−Size Income Statement
Revenues
Cost of goods sold
$ 10,070
Operating expenses
$ 2,110
Interest expense
%
(940)
Earnings before taxes
Revenues
Cost of goods sold
Gross profit
Operating expenses
Net operating income
Interest expense
Earnings before taxes
Taxes (425)
Net income
%
(7,960)
Net operating income
Net income
%
(19,950)
Gross profit
Taxes
2013
$ 30,020
$ 1,170
%
(425)
$ 745
%
$ 30,020 100.0 %
(19,950) -66.5
$ 10,070...