If you were an investor considering the purchase of a dry cleaning or laundry business and...

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If you were an investor considering the purchase of a dry cleaning or laundry business and you were offered a choice of the following three organized firms, which would you consider buying? You are to assume the existing liabilities. Assets Cash Accounts Receivable Store Equipment Office Equipment SUPER DRY-CLEANERS Balance Sheet December 31, 2015 P 15,000 60,000 35,000 40,000 P 150,000 Liabilities & Owner's Equity P 25,000 50,000 75,000 Accounts Payable Notes Payable (due in 120 days) Eliseo Samson, Capital T P 150,000 Assets Cash Accounts Receivable Store Equipment Office Equipment P 6,000 44,000 15,000 5,000 P 70,000 ELEGANT LAUNDRY Balance Sheet December 31, 2015 Liabilities & Owner's Equity P 20,000 5,000 55,000 Accounts Payable Notes Payable (due in 120 days) Eliseo Samson, Capital P 70,000 Assets Cash Accounts Receivable Store Equipment Office Equipment P 8,000 SOCIETY CLEANERS Balance Sheet December 31, 2015 16,000 60,000 120,000 P 204,000 Liabilities & Owner's Equity P 72,000 Accounts Payable Notes Payable (due in 120 days) Eliseo Samson, Capital 100,000 32,000 P 204,000 If you were an investor considering the purchase of a dry cleaning or laundry business and you were offered a choice of the following three organized firms, which would you consider buying? You are to assume the existing liabilities. Assets Cash Accounts Receivable Store Equipment Office Equipment SUPER DRY-CLEANERS Balance Sheet December 31, 2015 P 15,000 60,000 35,000 40,000 P 150,000 Liabilities & Owner's Equity P 25,000 50,000 75,000 Accounts Payable Notes Payable (due in 120 days) Eliseo Samson, Capital T P 150,000 Assets Cash Accounts Receivable Store Equipment Office Equipment P 6,000 44,000 15,000 5,000 P 70,000 ELEGANT LAUNDRY Balance Sheet December 31, 2015 Liabilities & Owner's Equity P 20,000 5,000 55,000 Accounts Payable Notes Payable (due in 120 days) Eliseo Samson, Capital P 70,000 Assets Cash Accounts Receivable Store Equipment Office Equipment P 8,000 SOCIETY CLEANERS Balance Sheet December 31, 2015 16,000 60,000 120,000 P 204,000 Liabilities & Owner's Equity P 72,000 Accounts Payable Notes Payable (due in 120 days) Eliseo Samson, Capital 100,000 32,000 P 204,000

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If I were an investor looking to purchase a dry cleaning or laundry business there are many things I would need to look over before considering any fi... View the full answer