Jerrison Company operates a wholesale hardware business. Thefollowing balance sheet accounts and balances are available forJerrison at December 31, 2019.
| Accounts payable | $ 65,100 | | Equipment, data processing | $309,000 |
| Accountsreceivable | 95,500 | | Income taxes payable | 150,000 |
| Accumulateddepreciation | | | Interest payable | 12,600 |
| (on building) | 216,800 | | Inventory | 187,900 |
| Accumulateddepreciation | | | Investments (long-term) | 32,700 |
| (on data processing equipment) | 172,400 | | Investments (short-term) | 10,400 |
| Accumulateddepreciation | 31,200 | | Land | 41,000 |
| (on trucks) | | | Notes payable (due June 1,2020) | 21,600 |
| Bonds payable (due Aug.30, 2023) | 200,000 | | Prepaid insurance (for 4months) | 5,700 |
| Building(warehouse) | 419,900 | | Retained earnings, 12/31/2019 | ? |
| Cash | 18,000 | | Salaries payable | 14,400 |
| Common stock | 150,000 | | Trucks | 106,100 |
Required:
1. Prepare a classified balance sheet forJerrison at December 31, 2019.
2.Compute Jerrison's working capital andcurrent ratio at December 31, 2019. Round the current ratio answerto two decimal places.
| Working Capital | $ |
| Current Ratio | |
| Jerrison Company |
| Balance Sheet |
| December 31, 2019 |
| Assets |
| Current assets: | | |
| Cash | $ | |
| Investments (short-term) | | |
| Accounts receivable | | |
| Prepaid insurance | | |
| Inventory | | |
| Total current assets | | $ |
| Long-term investments: | | |
| Investment | | |
| Property, plant, and equipment: | | |
| Land | | $ |
| Building | $ | |
| Less: Accumulated depreciation | | |
| Trucks | $ | |
| Less: Accumulated depreciation | | |
| Equipment (data processing) | $ | |
| Less: Accumulated depreciation | | |
| Total property, plant and equipment | | |
| Total assets | | $ |
| Liabilities |
| Current liabilities: | | |
| Accounts payable | $ | |
| Notes payable | | |
| Salaries payable | | |
| Interest payable | | |
| Income taxes payable | | |
| Total current liabilities | | $ |
| Long-term liabilities: | | |
| Bonds payable | | |
| Total liabilities | | $ |
| Stockholders' Equity |
| Common stock | $ | |
| Retained earnings | | |
| Total stockholders' equity | | |
| Total liabilities and stockholders' equity | | $ |
| Working Capital | $ |
| Current Ratio | |
