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Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firms worksheet for the year ended December 31, 2019.

ACCOUNTS	Debit			Credit
Cash	$	23,800
Petty Cash Fund		500
Notes Receivable, due 2020		11,500
Accounts Receivable		93,000
Allowance for Doubtful Accounts				$	5,700
Merchandise Inventory		231,000
Warehouse Supplies		2,830
Office Supplies		1,390
Prepaid Insurance		9,300
Land		43,000
Building		175,000
Accumulated DepreciationBuilding					52,200
Warehouse Equipment		35,500
Accumulated DepreciationWarehouse Equipment					16,500
Delivery Equipment		49,500
Accumulated DepreciationDelivery Equipment					19,000
Office Equipment		23,500
Accumulated DepreciationOffice Equipment					11,100
Notes Payable, due 2020					19,900
Accounts Payable					38,700
Interest Payable					550
Mortgage Payable					59,500
Loans Payable, Long-term					15,500
Charles Ronie, Capital (Jan. 1)					443,260
Charles Ronie, Drawing		126,700
Income Summary		241,000			231,000
Sales					1,679,000
Sales Returns and Allowances		17,900
Interest Income					1,550
Purchases		764,000
Freight In		13,500
Purchases Returns and Allowances					8,140
Purchases Discounts					10,860
Warehouse Wages Expense		196,600
Warehouse Supplies Expense		6,800
Depreciation ExpenseWarehouse Equipment		5,500
Salaries ExpenseSales		266,200
Travel and Entertainment Expense		21,200
Delivery Wages Expense		60,030
Depreciation ExpenseDelivery Equipment		9,500
Salaries ExpenseOffice		70,300
Office Supplies Expense		3,700
Insurance Expense		5,900
Utilities Expense		8,990
Telephone Expense		6,220
Payroll Taxes Expense		57,500
Property Taxes Expense		5,300
Uncollectible Accounts Expense		5,500
Depreciation ExpenseBuilding		8,700
Depreciation ExpenseOffice Equipment		3,700
Interest Expense		7,900
Totals	$	2,612,460		$	2,612,460

Required:

Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.

Prepare a statement of owners equity for the year ended December 31, 2019. No additional investments were made during the period.

Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year.

Analyze: What is the current ratio for this business?

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