The owner of Delton Property Rentals, Teal Delton, has requested an emergency meeting with you, a representative from the bank. "Our accountant has been on leave for the past several months and her replacement has resigned suddenly. I'm told we can't pay our employees this month and your bank won't lend us any money. I don't understand. We have lots of assets that can be used to pay expenses, as you can see from our balance sheet."

You explain to Mr. Delton that you will need to obtain some additional information. He faxes you the following:

*$200,000 principal is due annually each February 1.
**No withdrawals were made during 2013 or 2014.
Required
Using the elements of critical thinking described on the inside front cover, comment.

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Delton Property Rentals Balance Sheet March 31 2014 2013 Assets. Liabilities Equity ..2,850,000 $750,000 2,780,000 240,000 70,000 510,000 Delton Property Rentals Post-Closing Trial Balance March 31 2014 2013 Accounts payable Accounts receivable Accumulated depreciation, buildings.. Accumulated depreciation, equipment.. Buildings Cash Eqipmnt. Land Notes payable* Notes receivable, due Nov. 30, 2018.... Supplies.... Teal Delton, capital 75,000 215,000 165,000 50,000 30,000 2,112,000 430,000 15,000 40,000 45,000 45,000 675,000 50,000 2,440,000 204,000 . 35,000 120,000 8,000 50,000 70,000 S10,000 29,000