1 a) Construct a balance sheet out of the following information. This is like a puzzle where you have to put the pieces in the correct place. You have to identify the accounts below as to whether they are an asset or a liability. Remember that the balance sheet needs to balance on both sides. Try to make it look like a proper balance sheet with the heading, sections, etc.

b) Comment on the liquidity of the Redpart Company based on the balance sheet information given. Please substantiate your responses with relevant financial ratios.

c) If you were a bank, would you lend money to this company? Why or why not? Please substantiate your responses with relevant financial ratios. Redpart Company Balance Sheet as at November 30, 2016 Cash $2,000

Bank Loan $36,000

Accounts Receivable $5,000

Prepaid Insurance $1,000

Accounts Payable $21,000

Building $125,000

Truck $20,000

Accumulated Depreciation $23,000

Owners Equity ????