Slide two will analyse and present the important information found in the Balance Sheet for the caf, Hills Caf.

What to include and discuss in your slide:

Include a breakdown of the composition of the different types of assets and liabilities.

Using the Accounting Equation for this business, indicate if the business has more equity or liabilities. (Hint: include a pie chart to show the distribution of assets into liabilities and equity)

Explain in two sentences if this distribution is potentially risky for the business given that adding more liabilities increases the riskiness of the business.

The balance sheet for HillsCaf is as below:

Balance Sheet As at June 30, 2022
Current Assets	$	$
Cash	4,000
Accounts receivable (Visa/Mastercard/American Express)	3,000
Inventory	2,500	9,500
Non-Current Assets
Furniture & Fittings	10,000
Equipment	12,000
Website	3,000	25,000
Total Assets		34,500
Current Liabilities
Accounts payable	3,100
Bank loan current portion	3,000
GST payable	1,300	7,400
Non-Current Liabilities
Loan	15,000	15,000
Total Liabilities		22,400
Net Assets		$ 12,100
Shareholders Equity		$ 12,100