Question:
Which company is better to purchase and why?
A company B company
assets 10,000 25,000
cash 2,000 4,000
acct rec 50,000 80,000
equipment 11,000 18,000
supplies 22,000 34,000
total assets 95,000 161,000
liab &equity
Acct Payable 21,000 38,000
bank loan 49,000 68,000
equity 25,000 55,000
total 95,000 161,000
Other data
personal withdrawals 40,000 38,000
owner's investment 16,000 32,000
capital balance 30,000 12,000