The following balance sheet items, listed in Alphabetical order, are available from the records of Ruth Corporation at December 31,2010:
accounts payable $18,255
accounts receivable 23,450
accumulated depreciation-automobiles 22,500
accumulated depreciation- buildings 40,000
automobiles 112,500
bonds payable, due December 31, 2014 160,000
buildings 200,000
capital stock,$10 par value 150,00
cash 13,230
income taxes payable $6,200
interest payable 1,500
inventory 45,730
land 250,000
long-term investments 85,000
notes payable, due June 30, 2011 10,000
paid-in capital in excess of par value 50,000
patents 40,000
prepaid rent 1,500
retained earnings 311,095
salaries and wages payable 4,200
Required:
1. Prepare in good form a classified balance sheet as of December 31, 2010.
2. Compute Ruth's current ratio.
3. On the basis of your answer to (2), does Ruth appear to be liquid? What other information do you need to fully answer that question?