Prepare a “common size Balance Sheet” for both years
1. Prepare a “common size Balance Sheet” for both years.2. Prepare the Statement of Cash Flow.RPI, Inc. Balance Sheetsfor 12/31/09 and 12/31/10Assets 2009 2010Cash $16,000 $17,000Marketable securities (investments) 7,000 7,200Accounts receivable 42,000 38,000Inventory 50,000 93,000Prepaid rent 1,200 1,100Total current assets $116,200 $156,300Net plant and equipment 286,000 290,000Total assets $402,200 $446,300Liabilities and Stockholders’ Equity 2009 2010 Accounts payable $48,000 $55,000Notes payable 16,000 13,000Accruals payable 6,000 5,000Total current liabilities $70,000 $73,000Long-term debt $160,000 $150,000Common stockholders’ equity* $172,200 $223,300Total liabilities and equity $402,200 $446,300RPI, Inc. Income StatementFor the Year Ended 12/31/10Sales (all credit) $700,000Less: Cost of goods sold 500,000Gross profits $200,000Less: Operating and interest expensesGeneral and administrative $50,000Interest 10,000Depreciation 30,000Total 90,000Profit before taxes $110,000Less: Taxes 27,100Net income availableto common stockholders $82,900Less: Cash dividends 31,800Change in retained earnings $51,100*There are 100,000 shares of Common Stock outstanding