Two businesses, Tyler's Bicycle Centre and Ryan's Catering, have sought business loans from you. To decide whether to make the loans, you have requested their balance sheets.

Required
1. Based solely on these balance sheets, which entity would you be more comfortable lending money to? Explain fully, citing specific items and amounts from the balance sheets.
2. In addition to the balance sheet data, what other financial statement information would you require? Be specific.

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TYLER'S BICYCLE CENTRE Balance Sheet December 31,2016 Assets Cash Accounts receivable Liabilities 27,000 Accounts payable 42,000 Notes payable 55,000 Total liabilities $ 36,000 354,000 390,000 Store supplies Furniture and fixtures Building Land Total assets 2,000 26,000 Owner's Equity 246,000 T. Jones, capital 222,000 230,000 $620,000 Total liabilities and owner's equity $620,000 RYAN'S CATERING Balance Sheet December 31,2016 Assets Cash Accounts receivable Office supplies Liabilities Accounts payable S 30,000 S 9,000 204,000 213,000 12,000 Note payable 6,000 Total liabilities 60,000 15,000 Owner's Equity Office furniture 600,000 R. Smith, capital 510,000 Total assets $723,000 Total liabilities and owner's equity $723,000 The investments of S600,000 can be sold today for $750,000.