1. Complete the accounting equation for Business Solutions using the dollar amounts in this format: $______ = $_______ + $_____________

2. In discussing Business Solutions latest financial statements, you as the manager say that it is the the net income results on the bottom line that really count. What do you mean? Which financial statement are you referring to? Are the results reflected satisfactory? Explain your answers.

3. Does Business Solutions have enough cash to pay its liabilities on December 31, 2020? Please list the December 31 balance of cash, subtract the amount of total current liabilities and calculate the overage or shortfall cash amount. Does Business Solutions need to improve this situation? If your answer is that no improvement is needed, please describe what they are doing correctly. If your answer is yes improvement is needed, please provide a suggestion on how the company may improve.

BUSINESS SOLUTIONS Balance Sheet December 31, 2020 Assets Cash IS 50.919 5.788 580 750 1.530 IS 8,300 415 7.885 Accounts receivable Computer supplies Prepaid rent Prepaid insurance Office equipment Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-Computer equipment Total Assets Liabilities Accounts payable Wages payable Unearned computer services revenue 23.200 1,450 21.750 89.182 IS IS 1,500 480 Blo 2.300 4.280 Total Liabilities Equity Common stock Retained earnings 67.000 >> 17.902 Total equity Total Liabilities and Equity 84.902 89.182 $