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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:

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a:(15 points) Prepare a common size balance sheet for Carver Enterprises. Complete the common-size balance sheet: (Round to one decimal place.)

CommonSize Balance Sheet		2013
Cash and marketable securities	$	490		%
Accounts receivable		5,990
Inventories		9,550
Current assets	$	16,030		%
Net property plant and equipment		17,030
Total assets	$	33,060		%
Accounts payable	$	7,220		%
Shortterm debt		6,800
Current liabilities	$	14,020		%
Longterm liabilities		7,010
Total liabilities	$	21,030		%
Total owners equity		12,030
Total liabilities and owners equity	$	33,060		%

b:(15 points) Prepare a common-size income statement for Carver Enterprises. Complete the common-size income statement: (Round to one decimal place.)

CommonSize Income Statement		2013
Revenues	$	30,020		%
Cost of goods sold		(19,950)
Gross profit	$	10,070		%
Operating expenses		(7,960)
Net operating income	$	2,110		%
Interest expense		(940)
Earnings before taxes	$	1,170		%
Taxes		(425)
Net income	$	745		%

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