Consider the balance sheet given below and perform Common Size Analysis for the entire balance sheet. а. b. Write a detailed comment on the analysis performed and advice how the firm can improve further. BUSINESS CONSULTING COMPANY BALANCE SHEET As at December 31, 2015 Assets Current assets: Cash 85,550 Accounts receivable 4,700 Prepaid building rent Unexpired insurance Supplies 1,500 3,600 250 Total current assets 95,600 Non-current assets: Equipment Acc. dep. - Equipment 9,000 3,600 5,400 Total assets 101,000 Liabilities & Stockholders' equity Liabilities Notes payable Accounts payable Salaries payable Income tax pay able 5,000 1,600 2,000 3,000 Unearned service revenue 4,400 Total liabilities 16,000 Stockholders' equity: Capital stock Retained earnings 50,000 35,000 Total stockholders' equity 85,000 Total liabilities and stockholders' equity 101,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Consider the balance sheet given below and perform Common Size Analysis for the entire
balance sheet.
а.
b.
Write a detailed comment on the analysis performed and advice how the firm can improve further.
BUSINESS CONSULTING COMPANY
BALANCE SHEET
As at December 31, 2015
Assets
Current assets:
Cash
85,550
Accounts receivable
4,700
Prepaid building rent
Unexpired insurance
Supplies
1,500
3.600
250
Total current assets
95,600
Non-current assets:
9.000
Equipment
Acc. dep. - Equipment
3,600
5,400
Total assets
101,000
Liabilities & Stockholders' equity
Liabilities
Notes payable
Accounts pay able
5,000
1,600
Salaries payable
Income tax pay able
Unearned service revenue
2.000
3,000
4,400
Total liabilities
16,000
Stockholders' equity:
Capital stock
Retained earnings
50,000
35,000
Total stockholders' equity
85,000
Total liabilities and stockholders' equity
101,000
Transcribed Image Text:Consider the balance sheet given below and perform Common Size Analysis for the entire balance sheet. а. b. Write a detailed comment on the analysis performed and advice how the firm can improve further. BUSINESS CONSULTING COMPANY BALANCE SHEET As at December 31, 2015 Assets Current assets: Cash 85,550 Accounts receivable 4,700 Prepaid building rent Unexpired insurance Supplies 1,500 3.600 250 Total current assets 95,600 Non-current assets: 9.000 Equipment Acc. dep. - Equipment 3,600 5,400 Total assets 101,000 Liabilities & Stockholders' equity Liabilities Notes payable Accounts pay able 5,000 1,600 Salaries payable Income tax pay able Unearned service revenue 2.000 3,000 4,400 Total liabilities 16,000 Stockholders' equity: Capital stock Retained earnings 50,000 35,000 Total stockholders' equity 85,000 Total liabilities and stockholders' equity 101,000
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