As of December 31, 2011, balance sheet data for Stay-Trim Company and Tone-Up Company are as follows:

Instructions:
1. Prepare comparative common-size balance sheets for these two companies using total assets.
2. What conclusions can be drawn from these comparative common-size balancesheets?

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Stay-Trim Company one-Up Company Assets Current assets 51,000 5,000 48,000 6,000 5,000 $115,000 240,000 280,000 520,000 100,000 60,000 Land, buildings, and equipment (net) Intangible assets Other assets Total assets $1.200,000 Liabilities and Stockholders' Equity Current liabilities Long-term liabilities. Deferred revenues 15,000 25,000 5.000 $ 80,000 300.000 70,000 Total liabilities Preferred stock Common stock Additional paid-in capital Retained earnings Total stockholders' equity 45,000 550,000 S 100,000 200,000 85.000 65.000 S 650,000 $1.200.000 $5,000 30,000 25.000 10,000 $ 70,000 $115,000 Total liabilities and stockholders' equity