Compare and contrast the two common-size balance sheets below. Firm A may belong to an auto manufacturer, and Firm B may belong to a computer manufacturer. Is this statement true or false? Common Size Balance Sheets Assets Firm A Firm B Cash 26.7% 10.6% Accounts receivable 18.8% 0.9% Inventory 1.7% 2.9% Other current assets 7.9% 5.0% Total current assets 55.1% 19.4% Net plant and equipment 7.9% 13.3% Other long-term assets 37.1% 67.3% Total assets 100.0% 100.0% Liabilities Accounts payable 37.9% 6.5% Notes payable 0.0% 0.6% Other current liabilities 18.5% 19.0% Total current liabilities 56.4% 26.0% Long-term debt 2.6% 56.3% Other liabilities 8.4% 13.9% Total liabilities 67.5% 96.3% Common equity 0.8% 1.0% Retained earnings 31.7% 2.7% Total stockholders’ equity 32.5% 3.7% Total liabilities and equity 100.0% 100.0%

Georgia orchards produced a good crop of peaches this year. after preparing the following income statement, the company is concerned about the net loss on its no. 3 peaches. georgia orchards income statement for year ended december 31, 2017 no. 1 no. 2 no. 3 combined sales (by grade) no. 1: 300,000 ibs. @ $1.50/lb $ 450,000 no. 2: 300,000 ibs. @ $1.00/lb $ 300,000 no. 3: 750,000 ibs. @ $0.25/lb $ 187,500 total sales $ 937,500 costs tree pruning and care @ $0.30/ib 90,000 90,000 225,000 405,000 picking, sorting, and grading @ $0.15/ib 45,000 45,000 112,500 202,500 delivery costs 15,000 15,000 37,500 67,500 total costs 150,000 150,000 375,000 675,000 net income (loss) $ 300,000 $ 150,000 $ (187,500 ) $ 262,500 in preparing this statement, the company allocated joint costs among the grades on a physical basis as an equal amount per pound. the company’s delivery cost records show that $30,000 of the $67,500 relates to crating the no. 1 and no. 2 peaches and hauling them to the buyer. the remaining $37,500 of delivery costs is for crating the no. 3 peaches and hauling them to the cannery. required: 1. prepare reports showing cost allocations on a sales value basis to the three grades of peaches. separate the delivery costs into the amounts directly identifiable with each grade. then allocate any shared delivery costs on the basis of the relative sales value of each grade. (do not round intermediate calculations.)