Classified Balance Sheet
The following balance sheet items, listed in alphabetical order, are available from the records of Singer Company at December 31, 2014:
|
Accounts payable
|
$ 34,280
|
Interest payable
|
$ 2,200
|
|
Accounts receivable
|
26,700
|
Land
|
250,000
|
|
Accumulated depreciation-
|
|
Marketable securities
|
15,000
|
|
buildings
|
40,000
|
Merchandise inventory
|
112,900
|
|
Accumulated depreciation-
|
|
Notes payable, due April 15, 2015
|
6,500
|
|
equipment
|
12,500
|
Office supplies
|
400
|
|
Bonds payable, due December 31, 2020
|
250,000
|
Paid-in capital in excess of par value
|
75,000
|
|
Buildings
|
150,000
|
Patents
|
45,000
|
|
Capital stock, $1 par value
|
200,000
|
Prepaid rent
|
3,600
|
|
Cash
|
60,790
|
Retained earnings
|
113,510
|
|
Equipment
|
84,500
|
Salaries payable
|
7,400
|
|
Income taxes payable
|
7,500
|
|
|
|
Required
|
|
|
|
1. Prepare a classified balance sheet as of December 31, 2014.
2. Compute Singer's current ratio.
3. On the basis of your answer to (2), does Singer appear to be liquid? What other information do you need to fully answer that question?