The information that follows is from Jason's Hardware Corporation's June 30, 2014, post-closing trial balance.
|
Account norm
|
Debit
|
Credit
|
|
Cash
|
31,000
|
|
|
Short-Term Investments
|
33,000
|
|
|
Notes Receivable
|
10,000
|
|
|
Aunts Receivable
|
276,000
|
|
|
Merchandise Inventory
|
145,000
|
|
|
Prepaid Rent
|
1,600
|
|
|
Prepaid Insurance
|
4,800
|
|
|
Sales Supplies
|
1,280
|
|
|
Office Supplies
|
440
|
|
|
Deposit for Future Advertising
|
3,650
|
|
|
Building, Not in Use
|
45600
|
|
|
Land
|
22,400
|
|
|
Delivery Equipment
|
41,200
|
|
|
Accumulated Depredation-Delivery Equipment
|
|
28,400
|
|
Trademark
|
4,000
|
|
|
Aunts Payable
|
|
114,600
|
|
Salaries Payable
|
|
5,203
|
|
Interest Payable
|
|
840
|
|
Income Taxes Payable
|
|
4,750
|
|
Long-Term Notes Payable
|
|
80,000
|
|
Common Stock
|
|
129,000
|
|
Retained Earnings
|
|
261,210
|
|
Totals
|
624,000
|
624,000
|
|
Current assets
|
$3,664,000
|
$310,000
|
|
Total assets
|
23,214,000
|
1,740,000
|
|
Current liabilities
|
180,000
|
120,000
|
|
long-term liabilities
|
800,000
|
580,000
|
|
Stockholders' equity
|
1,340,000
|
1,040,000
|
|
Net sales
|
4,600,000
|
3,480,000
|
|
Net Income
|
300,000
|
204,000
|
Required:
1. Prepare a classified balance sheet for Jason's Hardware Corporation.
2. Business application- Compute Jason's Hardware's 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?