Two businesses, Blue Skies Corp., and Open Road, Inc., have sought business loans from you. To decide whether to make the loans, you have requested their balance sheets.

Requirement
1. Using only these balance sheets, to which entity would you be more comfortable lending money? Explain fully, citing specific items and amounts from the respective balance sheets.(Challenge)

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Blue Skies Corp. Balance Sheet August 31, 2011 Liabilities S 5,000 10,000 15,000 75,000 45,000 Accounts payabl Notes payable Total liabilities 50,000 80,000 Accounts receivable Furniture 130,000 Owners' Equity Equipment Owners' equity... Total liabilities and 20,000 Total a $150,000 owners' equity. $150,000 Open Road, Inc. Balance Sheet August 31, 2011 Assets Liabilities 5,000 Accounts receivable...10,000 Merchandise inventory.15,000 Building 35,000 Accounts payable Note payable Total liabilities 6,000 9,000 15,000 Stockholders' Equity Stockholders' equity Total liabilities and 50,000 Total asset... $65,000 stockholders' equity..$65,000