Two businesses, Queens Service Corp. and Insley Sales Co., have sought business loans from you. To decide whether to make the loans, you have requested their balance sheets.

Requirement
1. 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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A1 Queens Service Corp. Balance Sheet August 31, 2017 Assets Liabilities 5 5,000 Accounts payable S 50,000 80,000 130,000 3 Cash Accounts receivable 5 Land 6 Furniture 7 Equipment 10,000 Note payable 15000 otl liabilties 5,000 Stockholders' equity Stockholders Equity 20,000 Total liabilities and Total assets $ 150,000 stockholders' equity 10 A1 Insley Sales Co. Balance Sheet August 31, 2017 Assets Liabilities 5,000 Accounts payable 10,000 Note payable 15,000 Total liabilities 35,000 3 Cash 4 Accounts receivable 5 Merchandise inventory 6 Building $6,000 9,000 15,000 Stockholders' Equity 50,000 Stockholders' equity Total liabilities and 9 Total assets 65,000 stockholders quity 10