1. Continuing Venture, Inc. has the following balance sheet, with negative owners equity. Are they solvent? Why or why not? [Hint: identify elements of the balance sheet that indicate they are solvent, and ones which indicate trouble]

ASSETS
	Cash		$5,000
	Receivables		$60,000
	Inventories		$70,000
	Total Current Assets		$135,000
	Gross Property, Plant & Equipment		$205,000
	Less Accum Deprec		$28,000
	Net Plant & Equip		$177,000
	Total Assets		$312,000
LIABILITIES & EQUITY
	Accts Payable		$47,000
	S/T bank loan		$40,000
	Accrued liabilities		$8,000
	Total Current Liabilities		$95,000
	Long-term debt		$267,000
	Paid-In Capital		$100,000
	Retained Earnings		$(150,000)
	Total Owners' equity		$(50,000)
	Total Liab & O.E.		$312,000