Layout Help: Kitchen, Bathrooms, common areas

[Yuriy Tymoshenko]

Hey, guys, Im always impressed by the value of this forum.

I noticed there has been number of folks reaching out to the bigger audience for rehab advice on the layout of their projects.  I decide to follow the suit. I bought this house pretty cheaply, but it has number of quirks that annoying me.  One of those quirks is the strange layout. Please forgive my lack of artistry, but I hope I depict my project clearly. 

The biggest item that annoys me is how small and cramped is the Bathroom 2.  The sink is located in very narrow location. 

Another item is the Wall A.  I thought knocking this wall and putting an island to open up the floor plan.

I also was thinking about knocking down the AC and kitchen pantry closet down and make a clear pass to the bedroom from the kitchen. 

All these ideas.

So regardless of what Im thinking,  what would you do to more effectively use the space?

Thank you!

Yuriy