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these are the question for which i want answers separately for each Information for LALA Company are provided below. Prepare a common-size Balance Sheet for

these are the question for which i want answers separately for each

Information for LALA Company are provided below.

  1. Prepare a common-size Balance Sheet for LALA Company.
  2. Briefly explain your findings in part 1.
  3. Calculate Current ratio for 2019 & 2020. Comment on the firms liquidity.
  4. Calculate Debt to Assets ratio & Debt to Equity ratio for 2019 & 2020. Comment results.

LALA Company Balance Sheet

Years ended 2019 and 2020 (in thousands of Canadian dollars)

Assets

Liab. and Equity

2019

2020

2019

2020

Current Assets

Current Liabilities

Cash

$ 235

$289

Accounts Payable

$610

$ 570

Accounts Receivable

540

568

Notes Payable

300

330

Inventory

433

419

Total

910

900

Total

1,208

1,276

Long-Term Debt

0

600

Fixed Assets

890

1,200

Common Stock

88

88

Retained Earnings

1,100

888

Total Assets

$2,098

$2,476

Total Liab. and OE

$ 2,098

$2,476

LALA Company Balance Sheet

Years ended 2019 and 2020 (in thousands of Canadian dollars)

Assets

Liab. and Equity

2019

2020

2019

2020

Current Assets

Current Liabilities

Cash

Accounts Payable

Accounts Receivable

Notes Payable

Inventory

Total

Total

Long-Term Debt

Fixed Assets

Common Stock

Retained Earnings

Total Assets

Total Liab. and OE

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