1. The balance sheet and income statement for ACE Enterprises are found below: $ Balance Sheet Cash and marketable securities Accounts receivable Inventories Current Asset Net property, plant& equipment 17,000 Total 2x01 500 6,000 9,500 16,000 $ 33,000 Accounts payable Short term debt Current liabilities Long term liabilities Total liabilities Total owner's equity Total liabilities and owners' equity $ 7,200 6.800 14.000 7.000 21,000 12.000 $ 33.000 $ Income Statement Revenues 2x01 30.000 $ s $ $ Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Earning before taxes Taxes Net income (20,000) 10,000 (8,000) $ 2,000 900 $ 1,100 (400) 700 $ a. Prepare a common size income statement forAC enterprises 2. Analyzing common size financial statements a. How much cash does ACE have on hand relative to its total asset? b. What proportion of ACE's assets has the firm financed using short -term debt? Long term debt? c. What percent of ACE's revenues does the firm have left over after paying all of its expenses (including taxes)? d. Describe the relative importance of ACE's major expense categories including cost of goods sold, operating expenses, and interst expenses