Classified Balance Sheet
The information that follows is from Rodriguez's Tools Company's April 30, 2014, post-closing trial balance.
|
Account name
|
Debit
|
Credit
|
|
Cash
|
31,000
|
|
|
Short-Term Investments
|
43,500
|
|
|
Accounts Receivable
|
239,000
|
|
|
Merchandise Inventory
|
113,000
|
|
|
Notes Receivable
|
10,000
|
|
|
Interest Payable
|
|
930
|
|
Sales Supplies
|
1,280
|
|
|
Office Supplies
|
540
|
|
|
Deposit for Future Advertising
|
3,120
|
|
|
Long-Term Notes Payable
|
|
99,000
|
|
Land
|
34,700
|
|
|
Delivery Equipment
|
42,230
|
|
|
Accumulated Depreciation-Delivery Equipment
|
|
28,400
|
|
Building, Not in Use
|
72,100
|
|
|
Accounts Payable
|
|
129,600
|
|
Salaries Payable
|
|
4,600
|
|
Prepaid Rent
|
1,800
|
|
|
Prepaid Insurance
|
3,600
|
|
|
C. Rodriguez, Capital
|
|
337,340
|
|
Trademark
|
4,000
|
|
Required:
1. Prepare a classified balance sheet for Rodriguez's Tools.
2. Business Application- Compute Rodriguez's Tools' current ratio and debt to equity ratio. (Round to one decimal place.)
3. Business Application- As a user of the classified balance sheet, why would you want to know the current ratio or the debt to equity ratio?