Ted Tooney has operated a small service company for several years. The following information is from the financial statements prepared by Ted's accountant.

REQUIRED:Assume that you have some capital to invest and that Ted asked you to consider making an equity investment in his company. Review the financial statements and describe how you would respond to Ted's request. Support your recommendation withcalculations.

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2011 2010 Balance Sheet 5 8,000 15.000 4,000 7.000 Current assets Long-term assets Current liabilities Long-term liabilities Contributed capital Retained earnings ১ 9.000 18,000 7.000 9.000 9,000 9.000 3.000 2.000 Income Statement S92.000 Revenues S89.000 72.000 Еxpевses 78.000 Statement of Cash Flows Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Change in cash balance Beginning cash balance Ending cash balance $15.000 (5.000) (8.000) S 2.000 3.000 S 5.000 S12.000 (8,000) (5.000) S(1,00) 5.000 S 4.000