Two businesses, Open Skies Corp., and Roadster, Inc., have sought business loans from you. To decide whether to make the loans, you have requested their balance sheets.

Required
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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Open Skies Corp. Balance Sheet August 31, 2005 Liabilities Accounts paybl.. $100,000 Assets Cash Accounts receivable... Furniture La $10,000 Notes payable Total liabilities.. 160,000 260,000 30,000 150,000 90,000 Owners' Equity Owners' equity Total liabilities and owners' equity $300,000 Roadster, Inc. Balance Sheet August 31, 2005 Assets Liabilities 10,000 Accounts paya ble. 20,000 Note payable $12,000 18,000 Cash Merchandise inventory.. Building 70,000 Stockholders' Equity Stockholders' equity. Total liabilities and Total assets $130,000 equity$130,000