At the beginning of 2013, Mary Abrahams purchased a small business, the Maitz Company, whose income statement and balance sheets are shown in photo.

Given the information provided by the financial statements, what would you tell Abrahams? (As part of your answer,

Debt (Liabilities) and Equity Current debt: Accounts payable $10,000 $12,000 Accruals $7,000 $8,000 Short-term notes $5,000 $5,000 Total current debt $22,000 $25,000 Long-term debt $15,000 $15,000 Total debt $37,000 $40,000 Equity $55,000 $60,000 OTAL DEBT AND EQUITY $92,000 $100,000