a. Compare and contrast the two common-size balance sheets below. Which one do you think may belong to a natural resources company? Which may belong to a software acquisition and investments company?

b. Provide a complete analysis to support your choice(s). Note which components are the strongest indicators and which are not as strong Also note which items you would like to have more information about, and why.

	Firm A	Firm B
Current assets
Cash	0.97%	13.23%
Accounts receivable	4.06%	12.83%
Inventory	2.02%	0.61%
Other	0.70%	5.13%
Total current assets	7.75%	31.81%
Long-term assets
Property, plant and equipment	89.31%	5.86%
Long-term investments	0.00%	1.72%
Intangible assets	0.00%	59.45%
Other long-term assets	2.93%	1.16%
Total long-term assets	92.25%	68.19%
Total assets	100.00%	100.00%

Current liabilities
Accounts payable and accrued liabilities	1.05%	14.43%
Notes payable current	0.00%	3.52%
Other current liabilities	8.63%	24.73%
Total current liabilities	9.68%	42.68%
Long-term liabilities	42.13%	30.94%
Total liabilities	51.81%	73.62%

Common share capital	13.26%	1.72%
Preferred share capital (if any)	0.00%	0.00%
Retained earnings	34.93%	20.92%
Other equity	0.00%	3.75%
Total equity	48.19%	26.38%

Total liabilities and equity	100.00%	100.00%

Operating revenue	100.00%	100.00%
Cost of goods sold	45.77%	0.00%
Other operating expenses	22.71%	82.90%
Other income	-3.81%	8.44%
Earnings before interest and taxes	35.34%	8.66%
Interest expense	2.37%	1.33%
Earnings before taxes	32.97%	7.32%
Tax expense	7.48%	4.01%
Net earnings	25.50%	3.31%
Other comprehensive income	-0.03%	0.00%
Total comprehensive income	25.47%	3.31%