Two businesses, Brown Bag Corp. and April Sales Co., 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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A1 Brown Bag Corp Balance Sheet August 31, 2015 Assets Liabilities 5,0 Accounts payable 10,000 Note payable 75,000 Total liabilities 15,000 45,000 Stockholders' equity $50,000 80,000 130,000 3 Cash Accounts receivable Land Furniture Equipment Stockholders' Equity 20,000 Total liabilities and 9 Total assets 0 150,000 stockholders' equity S 150,000 Al April Sales Co. Balance Sheet August 31, 2015 Assets Liabilities 5,000 Accounts payable 10,000 Note payable 15,000 Total liabilities 35,000 6,000 9,000 15,000 3 Cash Accounts receivable Merchandise inventory Building Stockholders' Equity Stockholders' equity Total liabilities and 7 50,000 9 Total assets 65,000 stockholders' equity 65,000