Comment in the strength of firm's balance sheet

Paul's Guitar Shop, Inc. Balance Sheet December 31, 2015 Liabilities Assets Current Assets Current Liabilities Cash Accounts Payable 49,000 32,800 300 Accounts Receivable Accrued Expenses 450 Prepaid Rent 1,000 1,000 Unearned Revenue Total Current Liabilities 50,450 Inventory 39,800 Long-term Liabilities 99,500 73,900 Total Current Assets Total Liabilities 149,950 Owner's Equity Owner's Equity Long-term Assets Leasehold Improvements 100,000 Retained Earnings 11,950 Accumulated Depreciation (2,000) 98,000 Common Stock 10,000 98,000 Total Owner's Equity Total Long-term Assets 21,950 Total Liabilities and Owner's Equity Total Assets: 171,900 171,900 Paul's Guitar Shop, Inc. Balance Sheet December 31, 2015 Liabilities Assets Current Assets Current Liabilities Cash Accounts Payable 49,000 32,800 300 Accounts Receivable Accrued Expenses 450 Prepaid Rent 1,000 1,000 Unearned Revenue Total Current Liabilities 50,450 Inventory 39,800 Long-term Liabilities 99,500 73,900 Total Current Assets Total Liabilities 149,950 Owner's Equity Owner's Equity Long-term Assets Leasehold Improvements 100,000 Retained Earnings 11,950 Accumulated Depreciation (2,000) 98,000 Common Stock 10,000 98,000 Total Owner's Equity Total Long-term Assets 21,950 Total Liabilities and Owner's Equity Total Assets: 171,900 171,900