QUESTION $3$

Knights Lawncare and Sickler Farms are both agribusinesses located in Monongalia County, WV$.$

The balance sheets for the two companies are as follows at December $31,2023.$

$$

Instructions

a$.$ Assume that you are a banker for BB&T and each company has applied to you for a $90-$day

loan of $$20,000.$ Which would you consider to be the more favorable prospect? Explain your

answer fully.

b$.$ Assume that you are considering investing in these businesses $($considering purchasing all the

capital stock of one or both of the companies$).$ Do you see any indication of a financial crisis

that you might face shortly after buying either company? Explain your answer fully. $($For your

decision, additional information would be useful, but you are to reach your decision based

on the information provided here.$)$