The financial statements for the Bao Corporation are given below: Bao Corporation Comparative Balance Sheets December 31, 2015, and 2014 2015 2014 Assets Current assets: Cash $ 1,900 $ 1,300 Accounts receivable net 9,100 7,300 Inventory 11,300 9,100 Prepaid expenses 560 250 Total current assets 22,860 17,950 Property and equipment: Land 86,000 86,000 Buildings and equipment, net 48,600 52,000 Total property and equipment 134,600 138,000 Total assets $157,460 $155,950 Liabilities and Stockholders Equity Current liabilities: Accounts payable $ 17,600 $ 21,000 Accrued expenses 1,620 4,430 Notes payable, short term 540 220 Total current liabilities 19,760 25,650 Long-term liabilities: Bonds payable 5,300 5,300 Notes payable 34,400 35,000 Total liabilities 59,460 65,950 Stockholders equity: Common stock 11,000 11,000 Additional paid-in capital 19,000 19,000 Total paid-in capital 30,000 30,000 Retained earnings 68,000 60,000 Total stockholders equity 98,000 90,000 Total liabilities and stockholders equity $157,460 $155,950 569 Bao Corporation Comparative Income Statement For the Year Ended December 31, 2015, and 2014 2015 2014 Sales $130,000 $111,000 Cost of goods sold 67,000 61,000 Gross margin 63,000 50,000 Operating expenses: Selling expenses 24,500 20,000 Administrative expenses 17,500 14,600 Total operating expenses 42,000 34,600 Income from operations 21,000 15,400 Interest expense 5,600 4,700 Income before taxes 15,400 10,700 Less income taxes 6,160 4,280 Net income $ 9,240 $ 6,420 Required 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