Two businesses, Queens Service Corp. and Insley Sales Co., have sought business loans from you. To decide
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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 Queens Service Corp. Balance Sheet August 31, 2017 Assets Liabilities 5 5,000 Accounts payable S 50,000 80,000 130,000 3 Cash Accounts receivable 5 Land 6 Furniture 7 Equipment 10,000 Note payable 15000 otl liabilties 5,000 Stockholders' equity Stockholders Equity 20,000 Total liabilities and Total assets $ 150,000 stockholders' equity 10 A1 Insley Sales Co. Balance Sheet August 31, 2017 Assets Liabilities 5,000 Accounts payable 10,000 Note payable 15,000 Total liabilities 35,000 3 Cash 4 Accounts receivable 5 Merchandise inventory 6 Building $6,000 9,000 15,000 Stockholders' Equity 50,000 Stockholders' equity Total liabilities and 9 Total assets 65,000 stockholders quity 10
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Req 1 Based solely on these balance sheets Insley Sales Co appears to be th...View the full answer
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Related Book For
Financial Accounting
ISBN: 978-0134127620
11th edition
Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz
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