4. The balance sheets for Neon Company and Radon Company as at December 31. 20 - are shown below. A. Convert the two balance sheets into common-size form. B. Comment briefly on the ability of each of these companies to pay their accounts payable. C. Comment briefly on the total debt of each of these companies. BALANCE SHEETS DECEMBER 31, 20 Neon Company Radon Company Assets Bank Accounts Receivable Plant and Equipment Automobiles Total Assets $ 3 000 10 000 132 000 38 000 $183 000 $14 500 5 500 53 000 26 000 $99 000 Liabilities and Equity Accounts Payable Mortgage Payable Owner's Equity Total Liabilities and Equity $ 19 000 92 500 71 500 $183 000 $ 2 200 18 000 78 800 $99 000 ---HUN 8.3 EXERCISES (cont.) Exercise 4, p. 278 Balance Sheets December 31, 20- Neon Company Radon Company Items Assets Bank $ 3 000 $14 500 10 000 5500 Accounts Receivable Plant and Equipment 132 000 53 000 Automobiles 38 000 26 000 Total Assets $183 000 $99 000 Liabilities and Equity Accounts Payable $ 19 000 $ 2 200 92 500 18 000 Mortgage Payable Owner's Equity Total Liabilities and Equity 71 500 78 800 $183 000 $99 000