Given the balance sheet below, would you make a $3,000 sale to this company and agree to let them pay you in 30 days? Why or why not? Use a ratio to support your answer.

Burns Co.
Balance Sheet
As of December 31, 2023
Assets			Liabilities
Current Assets			Current Liabilities
Cash	5,000		Accounts Payable	10,000
Accounts Receivable	15,000		Accrued Payroll	5,000
Inventory	50,000			Total Current Liabilities	15,000
	Total Current Assets	70,000		Long-term Debt Payable	200,000
					Total Long-term Liabilities	200,000
Fixed Assets			Total Liabilities	215,000
Property	80,000		Stockholders' Equity
Plant & Equipment	165,000		Capital Stock	30,000
	Accumulated Dep	30,000		Retained Earnings	40,000
	Total Fixed Assets	215,000			Total Stockholders' Equity	70,000
Total Assets	285,000		Total Liabilities & S.E.	285,000

Answer rating: 100% (QA)

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