Question: Given the balance sheet below, would you make a $3,000 sale to this company and agree to let them pay you in 30 days? Why

Given the balance sheet below, would you make a $3,000 sale to this company and agree to let them pay you in 30 days? Why or why not? Use a ratio to support your answer.

Burns Co.
Balance Sheet
As of December 31, 2023
Assets Liabilities
Current Assets Current Liabilities
Cash 5,000 Accounts Payable 10,000
Accounts Receivable 15,000 Accrued Payroll 5,000
Inventory 50,000 Total Current Liabilities 15,000
Total Current Assets 70,000 Long-term Debt Payable 200,000
Total Long-term Liabilities 200,000
Fixed Assets Total Liabilities 215,000
Property 80,000 Stockholders' Equity
Plant & Equipment 165,000 Capital Stock 30,000
Accumulated Dep 30,000 Retained Earnings 40,000
Total Fixed Assets 215,000 Total Stockholders' Equity 70,000
Total Assets 285,000 Total Liabilities & S.E. 285,000

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