Two businesses, Web Services and PC Providers, have sought business loans from you. To decide whether to make the loans, you have requested their balance sheets.

Requirements
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.
2. Is there other financial information you would consider before making your decision? Be specific.

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Web Services Balance Sheet As at October 31, 2017 Assets Liabilities $11,000 Accounts payable 4,000 Notes payable 36,000Total liabilities $13,000 377,000 390,000 3 Caslh receivable 5 Furniture 6 Software 7 Computers 79,000 Shareholders' Equity 300,000 Shareholders' equity 40,000 Total liabilities and Total assets $430,000 shareholders' equity $430,000 PC Providers Inc. Balance Sheet As at October 31, 2017 Assets Liabilities $12,000 28,000 40,000 3 Cash 4 Accounts receivabl 5 Merchandise inve 9,000 Accounts payable 24,000 Note payable 85,000Total liabilities Furniture and fixtures 7 Building 9,000 82,000 14,000 Shareholders' equity Share holders' Equity 8 Land 183,000 Total liabilities and Total assets $223,000 shareholders' equity $223,000 10