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.

*The investments of $600,000 can be sold today for $750,000.
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, 2014 Liabilities Assets $ 27,000 $ 36,000 354,000 390,000 Cash Accounts payable Notes payable Accounts receivable 42,000 55,000 2,000 Merchandise inventory Store supplies Total liabilities Furniture and fixtures 26,000 Owner's Equity T. Jones, capital 230,000 Building Land 246,000 222,000 Total liabilities and owner's equity Total assets $620,000 $620,000 RYAN'S CATERING Balance Sheet December 31, 2014 Liabilities Assets $ 9,000 204,000 Cash $ 30,000 Accounts payable Note payable Accounts receivable 12,000 Office supplies Inventory 6,000 Total liabilities 213,000 60,000 Owner's Equity R. Smith, capital Office furniture 15,000 Investments* 600,000 510,000 Total liabilities and Total assets $723,000 owner's equity $723,000