Two similar companies had been competing since they first opened for business in the same year, 2013. At the end of 2016, Elemental Corporation reported assets of $42,500 and Stockholders Equity of $17,325. Blackman Enterprises reported assets of $125,000 and liabilities of $53,500. a. Which company had the greater reported liabilities, Elemental or Blackman?

b. Which company provides a better investment opportunity? Why?