Assets Cash Accounts Receivable Mowing Equipment Storage Building Other Equipment Vehicles Total KNIGHTS LAWNCARE BALANCE SHEET DECEMBER 31, 2020 Liabilities & Owners' Equity $ 21,900 Liabilities: 132,200 Accounts Payable 23,000 Salaries Payable 7,000 Total liabilities 9,400 Owners' equity: 15,000 Anita Knights, Capital $208,500 Total $ 6,000 29,200 $ 35,200 173,300 $208,500 Assets S. 67,000 Cash Notes Receivable SICKLER FARMS BALANCE SHEET DECEMBER 31, 2020 Liabilities & Owners' Equity Liabilities: $ 5,150 Notes Payable 2,700 Accounts Payable 2,450 Total liabilities 54,320 Owners' equity: 31,250 Capital Stock 70,000 Retained Earnings $165,870 Total 35,805 $102,805 Accounts Receivable Building Equipment Land 5.000 58,065 $ 165,870 Total Instructions Assets $ 67,000 35,805 $102,805 Cash Notes Receivable Accounts Receivable Building Equipment Land Total Liabilities: $ 5,150 Notes Payable 2,700 Accounts Payable 2,450 Total liabilities 54,320 Owners' equity: 31,250 Capital Stock 70,000 Retained Earnings $165,870 Total 5,000 58,065 $165,870 Instructions a. Assume that you are a banker for BB&T and each company has applied to you for a 90-day loan of $20,000. Which would you consider to be the more favorable prospect? Explain your answer fully. b. Assume that you are considering investing in these businesses (considering purchasing all the capital stock of one or both of the companies). Do you see any indication of a financial crisis that you might face shortly after buying either company? Explain your answer fully. (For your decision, additional information would be useful, but you are to reach your decision based on the information provided here.)