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Presented below is the December 31, 2020 pre-closing trial balance for Tumbleweed Painting Company. 1. Prepare a classified balance sheet as of December 31, 2020 in good form like you would present it to a client (i.e. proper heading, dollar signs, underlining, no abbreviations). 2. Calculate working capital and the current ratio. (round the ratio to 2 places past the decimal)

Account Title

Accounts payable $ 22,000

Accounts receivable 82,000

Accumulated depreciation - buildings 7,500

Accumulated depreciation - equipment 2,200

Allowance for doubtful accounts 9,000

Bonds payable due in 2030 72,000

Buildings 150,000

Cash 150,000

Common stock, $1 par vaue 75,000

Cost of goods sold 44,000

Discount on bonds payable 17,500

Equipment 23,000

Goodwill 13,000

Income taxes payable 8,500

Inventory 12,750

Investments 54,000

Notes payable due in 2026 60,000

Notes payable in annual installments of $50,000 beginning in January 2021 200,000

Painting sales 95,000

Patents 23,000

Preferred stock, $10 par value 50,000

Prepaid insurance 650

Retained earnings ?????

Treasury Stock 38,500

Wages payable 900

Additional information:

1. The cash account includes $30,000 set aside for the repayment of bonds, $24,000 which is restricted to purchase a new vehicle in two years, $50,000 which is held in a commercial checking account, a $100 overdraft in an account at a different bank, and $46,100 in a certificate of deposit which will mature in 180 days.

2. 200,000 shares of common stock are authorized. 15,000 shares of common stock are held in treasury. 20,000 shares of preferred stock are authorized and all shares that have been issued are currently outstanding.

3. The investments account includes $12,000 of commercial paper which has a maturity of 30 days. The account also includes $17,000 in short-term investments. The remaining balance is invested in various securities which company management intends to hold for several years

4. All accounts have normal balances.

5. Footnotes are not required.

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