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?

PROBLEM 14-13. Common-Size Financial Statements [LO 1] The financial statements for the Bao Corporation are given below: Bao Corporation Comparative Balance Sheets December 31, 2018, and 2017 2018 2017 $ 1.900 9,100 11.300 560 22.860 $ 1,300 7.300 9,100 250 17.950 86,000 86,000 48.600 134,600 $157,460 52.000 138,000 $155.950 Assets Current assets Cash Accounts receivable.net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment.net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued expenses Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Notes payable Total liabilities Stockholders' equity Common stock Additional paid in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 17,600 1.620 $ 21,000 4.430 220 25,650 540 19,760 5,300 34.400 59.460 5.300 35,000 65.950 11.000 19.000 30,000 68,000 98.000 $157460 11.000 19,000 30,000 60,000 90,000 $155.950 2017 $111.000 61,000 50,000 Bao Corporation Comparative Income Statement For the Years Ended December 31, 2018, and 2017 2018 Sales $130.000 Cost of goods sold 67,000 Gross margin 63,000 Operating expenses: Selling expenses 24.500 Administrative expenses 17.500 Total operating expenses 42.000 Income from operations 21.000 Interest expense 5.600 Income before taxes 15400 Less income taxes 6.160 Net income $ 9,240 20,000 14,600 34.600 15.400 4.700 10,700 4.280 $ 6,420