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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
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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