Credit Decisions and the Balance Sheet You just started your new position as a junior credit analyst with a large Canadian bank. For your first assignment, you have been asked to review the balance sheets of Design Your Sign Inc. and Info Tech Systems. Both companies have applied for a $100,000 small business loan. However, given current credit conditions, only one company will be awarded the loan. You manager has given you a brief background on the operations of each company and the purpose of the loan: "Design Your Sign Inc.: The company designs and prints corporate signs, business cards, letterheads, etc. Although the company is relatively new, it has been able to secure deals with various local businesses. TheCanadian Financial Accounting Cases32

Current assets

Accounts reccivable

Inventory

Non-current assets

Land and buildings

Intangible assets

Total assets

Canadian Financial Accounting Cases

EXHIBIT I - BALANCE SHEETS

DESIGN YOUR SIGN INC.

BALANCE SHEET

AS AT DECEMBER 31, 2014

$22.750

35,000

57,750

Current liabilities

Bank overdraft

Accounts payable

Non-current liabilities

Long-term debt

125,750

15,000

140.750

$198,500

Shareholders' equity

Share capital

Retained Earnings

$22.575

17,750

40,325

82.750

25,000

50,125

75,125

$198,500INFO TECH SYSTEMS LTD.

BALANCE SHEET

AS AT DECEMBER 31, 2014

$12.750

55,750

$68.500

Current liabilities

Accounts payable

Accrued liabilities

S15,575

7.000

$22,575

152.750

Non-current assets

Property and equipment

Intangible assets

Total assets.

$12,750

98.950

111,700

$180,200

Non-current liabilities

Long-term debt

Shareholders equity

Share capital

Retained Earnings

5,000