Consider the balance sheet given below and perform Common Size Analysis for the entire balance sheet. Write a detailed comment on the analysis performed and advice how the firm can improve further.
Consider the balance sheet given below and perform Common Size Analysis for the entire balance sheet. Write a detailed comment on the analysis performed and advice how the firm can improve further.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Consider the
Write a detailed comment on the analysis performed and advice how the firm can improve further.

Transcribed Image Text:BUSINESS CONSULTING COMPANY
BALANCE SHEET
As at December 31, 2015
Assets
Current assets:
Cash
85,550
Accounts receivable
4,700
Prepaid building rent
1,500
Unexpired insurance
Supplies
3,600
250
Total current assets
95,600
Non-current assets:
Equipment
9,000
Аcс. dep. - Equipment
3,600
5,400
Total assets
101,000
Liabilities & Stockholders' equity
Liabilities
Notes payable
5,000
Accounts payable
1,600
Salaries payable
2,000
Income tax payable
3,000
Unearned service revenue
4,400
Total liabilities
16,000
Stockholders' equity:
50,000
Capital stock
Retained earnings
35,000
Total stockholders' equity
85,000
Total liabilities and stockholders' equity
101,000
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