CHAPTER 3 B-21
The common-base year answers for Question 14 are found by dividing each category value for 2009
by the same category value for 2008. For example, the cash common-base year number is found by:
$10,157 / $8,436 = 1.2040
This means the cash balance in 2009 is 1.2040 times as large as the cash balance in 2008.
The common-size, common-base year answers for Question 15 are found by dividing the common-
size percentage for 2009 by the common-size percentage for 2008. For example, the cash calculation
is found by:
3.13% / 2.86% = 1.0961
This tells us that cash, as a percentage of assets, increased by 9.61%.
16. 2008
Sources/Uses 2008
Assets
Current assets
Cash $8,436 $1,721 U $10,157
Accounts receivable 21,530 1,876 U 23,406
Liabilities and Owners’ Equity
Current liabilities
Accounts payable $43,050 3,771 S $46,821
Notes payable 18,384 –1,002 U 17,382
Total $208,998 $19,318 S $228,316
Total liabilities and owners’ equity $295,432 $29,087 S $324,519
financing (on a net basis), out of the additions to retained earnings, an increase in current liabilities,
and by an issue of long-term debt.