Business Environment and Recording Transactions

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The proprietors of two businesses, L.L. Sams Company and Melinda Garcia Career Services, have sought business loans from you. To decide whether to make the loans, you have requested their balance sheets.

Solely on the basis of these balance sheets, to which entity would you be more comfortable lending money?

please help!


Impossible to answer without seeing the balance sheets.


Leo, relax (I know I was just to tired to type).

I would appreciate someones help : ) Thank you!

L.L. Sams Company Balance Sheet August 31, 2004

Assets
Cash $9,000
Accounts Receivable 14,000
Merchandise Inventory 85,000
Store Supplies 500
Building 80,000
Furniture and fixtures 9,000
Land 14,000
Total Assets $211,500

Liabilities
Accounts Payable $12,000
Note Payable 18,000
Total Liabilities 30,000

Owner's Equity
L.L. Sams, capital 181,500
Total Liabilities and owner's equity $211,500

Melinda Garcia Career Services lBalance Sheet August 31, 2004

Assets
Cash $11,000
Accounts Receivable 7,000
Office Supplies 1,000
Office Furniture 56,000
Land 169,000
Total Assets $244,000

Liabilities
Accounts Payable 6,000
Note Payable 168,000
Total Liabilities 174,000

Owner's Equity
Melinda Garcia, capital 70,000
Total Liabilities and owner's equity $244,000



Leo, did you see the balance sheet can you help me with this answer and understand it also. : )


Rub your index fingers gently over a piece of very coarse sandpaper a few times and rate its coarseness on a scale from 1 very soft to 7 very coarse. After a minute or two, rub the same finger over the paper and again rate its coarseness. Did your perception of the coarseness change? How?


Target Corporation is currently seeking additional capital to expand its operations. Two companies have shown interest in providing additional capital.

Company #1 is interested in investing in the organization and, therefore, would like to have part ownership through the sale of new stock.
Company #2 is interested in providing a loan to the Target Corporation.
Both organizations need to know more about the financial stability of Target.

As an employee of Target, your supervisor needs you to write a memo in which you explain what information from the Target Corporation's financial statements will be highlighted when representatives of Target meet with each of these companies. In your memo, be sure to explain which information will be highlighted to Company #1 and which information will be highlighted to Company #2 and why. Explain any differences in the information that you have chosen to highlight


After a minute or two, rub the same finger over the paper and again rate its coarseness. Did your perception of the coarseness change?

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