Based on your financial statements for Business Solutions answer the following questions:

1. Complete the accounting equation for Business Solutions using the amounts in this format: $______ = $_______ + $_____________

2. In discussing Business Solutions latest financial statements, you as the manager say that it is the the net income results on the bottom line that really count. What do you mean? Which financial statement are you referring to? Are the results reflected satisfactory? Explain your answers.

3. Does Business Solutions have enough cash to pay its liabilities on December 31, 2018? Please list the December 31 balance of cash, subtract the amount of total current liabilities and calculate the overage or shortfall cash amount. Does Business Solutions need to improve this situation? If no, please describe what they are doing correctly. If yes, please describe how they may improve.

51,074 4,968 620 1,440 740 7,695 BUSINESS SOLUTIONS Balance Sheet December 31, 2018 Assets Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciationOffice equipment Computer equipment Accumulated depreciation-Computer equipment Total Assets Liabilities Accounts payable Wages payable Unearned computer services revenue Total Liabilities Equity Common stock Retained earnings Total Liabilities and Equity $ 8,100 (405) 22,800 (1,425) 21,375 87,912 $ 1,500 460 1,700 3,660 O 69,000 15,252 87,912 $