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
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement
Section: Chapter Questions
Problem 20P
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