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 150,000
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?