Principles of Finance:

a. Consider the balance sheet given below and perform Common Size Analysis for the entire balance sheet. b. Write a detailed comment on the analysis performed and advice how the firm can improve further. BUSINESS CONSULTING COMPANY BALANCE SHEET As at December 31, 2015 Assets Current assets: Cash 85 550 Accounts receivable 4 700 Prepaid building rent 1.500 Unexpired insurance 3.600 Supplies 250 Total current assets 95,600 Non.current assets Equipment 9.000 Acc. dop. - Equipment 3 600 5:400 Total assets 101.000 Liabilities & Stockholders' equity Liabilities Notes payable 5:000 Accounts payable 1.600 Salaries payable 2 000 Income tax payable 3:000 Unearned service revenue 4 400 Total liabilities 16 000 Stockholders' ogully. Capital stock 50,000 Retained earnings 36,000 Total stockholders equity 85.000 Total liabilities and stockholders equity 101,000