Luis Fantano is a realtor. He buys and sells properties on his own and also earns commission as an agent for buyers and sellers. Fantano organized his business as a corporation on July 10, 2020. The business received \(\$ 75,000\) from Fantano and issued common shares in return. Consider these facts as of July 31, 2020:

a. Fantano owes \(\$ 5,000\) on a personal charge account with Visa.

b. Fantano's business owes \(\$ 80,000\) on a note payable for some undeveloped land acquired for a total price of \(\$ 135,000\).

c. Fantano has \(\$ 5,000\) in his personal bank account and \(\$ 10,000\) in the business bank account.

d. Office supplies on hand at the real estate office total \(\$ 1,000\).

e. Fantano's business spent \(\$ 35,000\) for a Century 21 real estate franchise, which entitles him to represent himself as a Century 21 agent. Century 21 is a national affiliation of independent real estate agents. This franchise is a business asset.

f. Fantano owes \(\$ 125,000\) on a personal mortgage on his personal residence, which he acquired in 2007 for a total price of \(\$ 300,000\).
g. Fantano acquired business furniture for \(\$ 18,000\) on July 15 . Of this amount, his business owes \(\$ 10,000\) on open account at July 31 .

{Requirements}
1. Identify and explain why some of the data included in items \(a-g\) above are not relevant to preparing the company's balance sheet as at July \(31,2020\).
2. Prepare the company's balance sheet as at July \(31,2020\).
3. Identify the items on the balance sheet that are relevant to assessing whether the company can pay its short-term debts.
4. Does it appear the company can pay its debts? Why?