AP14-13 (a) & (b) Common-Size Financial Statements [LO 1, 2] The financial statements for the Bao Corporation are given below. Bao Corporation Comparative Balance Sheets December 31, 2012 and 2011 2012 2011 Assets Current assets: Cash $2,500 $1,780 Accounts receivable net 14,100 9,700 Inventory 16,100 13,300 Prepaid expenses 680 310 Total current assets 33,380 25,090 Property and equipment: Land 107,000 107,000 Buildings and equipment, net 63,600 67,000 Total property and equipment 170,600 174,000 Total assets 203,980 199,090 Liabilities and stockholders’ equity Current liabilities: Accounts payable $23,600 $28,200 Accrued expenses 2,100 6,230 Notes payable, short term 660 280 Total current liabilities 26,360 34,710 Long-term liabilities: Bonds payable 6,500 6,980 Notes payable 49,200 47,600 Total liabilities 82,060 89,290 Stockholders’ equity: Common stock 14,000 14,000 Additional paid-in capital 25,600 25,000 Total paid-in capital 39,600 39,000 Retained earnings 82,320 70,800 Total stockholders’ equity 121,920 109,800 Total liabilities and stockholders’ equity $203,980 $199,090 Bao Corporation Comparative Income Statement For the Year Ended December 31, 2012 and 2011 2012 2011 Sales $160,000 $135,000 Cost of goods sold 85,000 77,800 Gross margin 75,000 57,200 Operating expenses: Selling expenses 28,100 22,400 Administrative expenses 20,500 16,400 Total operating expenses 48,600 38,800 Income from operations 26,400 18,400 Interest expense 6,920 4,750 Income before taxes 19,480 13,650 Less income taxes 7,792 5,460 Net income $11,688 $8,190 Present the balance sheet with each account balance as a percent of total assets. (Round answers to 1 decimal place, e.g. 2.1%.) Bao Corporation Comparative Balance Sheet December 31, 2012 and 2011 2012 2011 Assets Current assets: Cash $2,500 % $1,780 % Accounts receivable, net 14,100 % 9,700 % Inventory 16,100 % 13,300 % Prepaid expenses 680 % 310 % Total current assets 33,380 % 25,090 % Property and equipment: Land 107,000 % 107,000 % Building and equipment, net 63,600 % 67,000 % Total property and equipment $170,600 % 174,000 % Total Assets $203,980 % $199,090 % Liabilities and stockholders equity Current liabilities Accounts payable $23,600 % $28,200 % Accrued expenses 2,100 % 6,230 % Notes payable, short term 660 % 280 % Total current liabilities 26,360 % 34,710 % Long-term liabilities: Bonds payable 6,500 % 6,980 % Notes payable 49,200 % 47,600 % Total long-term liabilities 55,700 % 54,580 % Total liabilities 82,060 % 89,290 % Stockholders’ equity Common stock 14,000 % 14,000 % Additional paid-in capital 25,600 % 25,000 % Total paid-in capital 39,600 % 39,000 % Retained earnings 82,320 % 70,800 % Total stockholders’ equity 121,920 % 109,800 % Total liabilities and stockholders’ equity $203,980 % $199,090 Present the income statement with each balance as a percent of sales. (Round answers to 1 decimal place, e.g. 2.1%.) Bao Corporation Comparative Income Statement For the Year Ended December 31, 2012 and 2011 2012 2011 Net sales $160,000 % $135,000 % Cost of goods sold 85,000 % 77,800 % Gross margin 75,000 % 57,200 % Operating expenses: Selling expenses 28,100 % 22,400 % Administrative expenses 20,500 % 16,400 % Total operating expenses 48,600 % 38,800 % Operating income 26,400 % 18,400 % Interest expense 6,920 % 4,750 % Income before taxes 19,480 % 13,650 % Income taxes 7,792 % 5,460 % Net income $11,688 % $8,190 % ________________________________________

AP14-13 (a) & (b)

Common-Size Financial Statements [LO 1, 2]

The financial statements for the Bao Corporation are given below.

Bao Corporation
Comparative Balance Sheets
December 31, 2012 and 2011
		2012		2011
Assets
Current assets:
	Cash	$2,500		$1,780
	Accounts receivable net	14,100		9,700
	Inventory	16,100		13,300
	Prepaid expenses	680		310
	Total current assets	33,380		25,090
Property and equipment:
	Land	107,000		107,000
	Buildings and equipment, net	63,600		67,000
Total property and equipment		170,600		174,000
Total assets		203,980		199,090
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable	$23,600		$28,200
	Accrued expenses	2,100		6,230
	Notes payable, short term	660		280
Total current liabilities		26,360		34,710
Long-term liabilities:
	Bonds payable	6,500		6,980
	Notes payable	49,200		47,600
Total liabilities		82,060		89,290
Stockholders’ equity:
	Common stock	14,000		14,000
	Additional paid-in capital	25,600		25,000
	Total paid-in capital	39,600		39,000
	Retained earnings	82,320		70,800
Total stockholders’ equity		121,920		109,800
Total liabilities and stockholders’ equity		$203,980		$199,090
Bao Corporation
Comparative Income Statement
For the Year Ended December 31, 2012 and 2011
		2012		2011
Sales		$160,000		$135,000
Cost of goods sold		85,000		77,800
Gross margin		75,000		57,200
Operating expenses:
	Selling expenses	28,100		22,400
	Administrative expenses	20,500		16,400
Total operating expenses		48,600		38,800
Income from operations		26,400		18,400
Interest expense		6,920		4,750
Income before taxes		19,480		13,650
Less income taxes		7,792		5,460
Net income		$11,688		$8,190

Present the balance sheet with each account balance as a percent of total assets. (Round answers to 1 decimal place, e.g. 2.1%.)

Bao Corporation
Comparative Balance Sheet
December 31, 2012 and 2011
		2012				2011
Assets
Current assets:
	Cash	$2,500		%		$1,780		%
	Accounts receivable, net	14,100		%		9,700		%
	Inventory	16,100		%		13,300		%
	Prepaid expenses	680		%		310		%
Total current assets		33,380		%		25,090		%
Property and equipment:
	Land	107,000		%		107,000		%
	Building and equipment, net	63,600		%		67,000		%
Total property and equipment		$170,600		%		174,000		%
Total Assets		$203,980		%		$199,090		%
Liabilities and stockholders equity
Current liabilities
	Accounts payable	$23,600		%		$28,200		%
	Accrued expenses	2,100		%		6,230		%
	Notes payable, short term	660		%		280		%
Total current liabilities		26,360		%		34,710		%
Long-term liabilities:
	Bonds payable	6,500		%		6,980		%
	Notes payable	49,200		%		47,600		%
Total long-term liabilities		55,700		%		54,580		%
Total liabilities		82,060		%		89,290		%
Stockholders’ equity
	Common stock	14,000		%		14,000		%
	Additional paid-in capital	25,600		%		25,000		%
	Total paid-in capital	39,600		%		39,000		%
	Retained earnings	82,320		%		70,800		%
Total stockholders’ equity		121,920		%		109,800		%
Total liabilities and stockholders’ equity		$203,980		%		$199,090

Present the income statement with each balance as a percent of sales. (Round answers to 1 decimal place, e.g. 2.1%.) Bao Corporation Comparative Income Statement For the Year Ended December 31, 2012 and 2011     2012  2011 Net sales $160,000 % $135,000 % Cost of goods sold 85,000 % 77,800 % Gross margin 75,000 % 57,200 % Operating expenses: Selling expenses 28,100 % 22,400 % Administrative expenses 20,500 % 16,400 % Total operating expenses 48,600 % 38,800 % Operating income 26,400 % 18,400 % Interest expense 6,920 % 4,750 % Income before taxes 19,480 % 13,650 % Income taxes 7,792 % 5,460 % Net income $11,688 % $8,190 %