Data From Problem 13-13

The financial statements for the Bao Corporation are given below.

    

Required
a. Present the balance sheet with each account balance as a percent of total assets.
b. Present the income statement with each balance as a percent of sales.
c. Comment on the results of any significant findings.
d. What types of issues does the company seem to be facing?
e. What suggestions do you have for the Bao Corporation?

Transcribed Image Text:

Bao Corporation Comparative Balance Sheets December 31, 2009 and 2008 2009 2008 Assets Current assets: Cash Accounts receivable net $ 1,800 $ 1,200 8,430 6,800 Inventory Prepaid expenses 10,500 8,450 520 230 Total current assets 21,250 16,680 Property and equipment: Land 80,000 80,000 Buildings and equipment, net 45,000 48,200 Total property and equipment 125,000 128,200 Total assets $146,250 $144,880