Q2 a. [4 marks) Consider the balance sheet given below and perform Common Size Analysis for the entire balance sheet. Write a detailed comment on the analysis performed and advice how the firm can improve further. b. BUSINESS CONSULTING COMPANY BALANCE SHEET As at December 31, 2015 Assets Current assets: Cash Accounts receivable Prepald building ront Unexpired insurance Supplies 85 550 4.700 1.500 3.600 250 95,600 Total current assets Noncurrent assets. Equipment Acc dop. - Equipment Total assets 9,000 3.600 5.400 101.000 Liabilities & Stockholders' equity 5.000 1.500 2.000 3.000 Liabilities Notes payable Accounts payable Salaries payable Income tax payable Uneared service revenue Total liabilities Stockholders' equlty Capital stock Retained earnings 4.400 16,000 50,000 35,000 85,000 Total stockholders' equity Total llabilities and stockholders' equity 101.000 Q2 a. [4 marks) Consider the balance sheet given below and perform Common Size Analysis for the entire balance sheet. Write a detailed comment on the analysis performed and advice how the firm can improve further. b. BUSINESS CONSULTING COMPANY BALANCE SHEET As at December 31, 2015 Assets Current assets: Cash Accounts receivable Prepald building ront Unexpired insurance Supplies 85 550 4.700 1.500 3.600 250 95,600 Total current assets Noncurrent assets. Equipment Acc dop. - Equipment Total assets 9,000 3.600 5.400 101.000 Liabilities & Stockholders' equity 5.000 1.500 2.000 3.000 Liabilities Notes payable Accounts payable Salaries payable Income tax payable Uneared service revenue Total liabilities Stockholders' equlty Capital stock Retained earnings 4.400 16,000 50,000 35,000 85,000 Total stockholders' equity Total llabilities and stockholders' equity 101.000