Cleaners, a smaller company ssful in recent years. The rn Tip Top Cleaners around, 6. Ace Cleaning is considering the purchase of Tip Top Cleaners, a smaller co in another town. Tip Top Cleaners has not been successful in recent owners of Ace Cleaning feel confident that they can turn Tip Top Cleaner The income statements for the two companies are shown below. INCOME STATEMENTS YEAR ENDED DECEMBER 31, 20 Ace Cleaning $294 325 Tip Top Cleaners $147 821 $ 7100 11 190 36 960 500 Revenues Operating Expenses Bank Charges Expense Car Expense Cleaning Supplies Expense Insurance Expense Utilities Expense Miscellaneous Expense Rent Expense Telephone Expense Wages Expense Total Expenses Net Income $ 6 700 28 070 52 950 2 800 6 500 1 800 18 000 3 721 100 971 $221 512 $ 72 813 2 100 750 12 000 I 570 75 360 $147 530 A. Complete the common-size income statements in your Workbook. B. Identify areas of weakness in the operations of Tip Top Cleaners. C. In your opinion, can Ace Cleaning turn Tip Top Cleaners around? Should they proceed with the purchase? Briefly give your reasons. Income Statements Year End December 31, 20 Ace Cleaning Tip Top Cleaners $147 821 2 Revenues $294 325 2 x 2 2 $ 7100 11 190 36 960 500 2 100 2 2 2 Operating Expenses Bank Charges Expense Car Expense Cleaning Supplies Expense Insurance Expense Utilities Expense Miscellaneous Expense Rent Expense Telephone Expense Wages Expense Total Expenses 2 2 2 $ 6700 28 070 52 950 2 800 6 500 1 800 18 000 3 721 100 971 $221 512 750 2 2 2 2 2 2 12 000 1570 75 360 $147 530 2 2 2 2 Net Income $ 72 813 $ 291 2 x