Classified Balance Sheet
Following is a list of account titles and balances for Waite Investment Corporation as of January 31, 2008.
Accounts Payable |
$ 87,900 |
Accounts Receivable |
161,200 |
Accumulated Depreciation—Buildings |
149,700 |
Accumulated Depreciation—Machinery and Equipment |
121,300 |
Additional Paid In Capital—Common Stock |
$612,000 |
Allowance for Doubtful Notes and Accounts Receivable |
19,700 |
Buildings |
370,000 |
Cash Fund for Stock Redemption |
22,500 |
Cash in Banks |
10,320 |
Cash on Hand |
86,250 |
Claim for Income Tax Refund |
5,100 |
Common Stock, $1 par |
60,000 |
Employees’ Income Taxes Payable |
4,260 |
Income Taxes Payable |
19,900 |
Interest Payable |
6,890 |
Interest Receivable |
1,200 |
Inventory |
176,000 |
Investment Securities (trading) |
98,750 |
Investments in Undeveloped Properties |
183,000 |
Land |
201,000 |
Machinery and Equipment |
145,000 |
Miscellaneous Supplies Inventory |
5,600 |
Notes Payable (current) |
52,320 |
Notes Payable (due in 2013) |
41,000 |
Notes Receivable (current) |
25,960 |
Preferred Stock, $5 par |
305,000 |
Prepaid Insurance |
2,800 |
Retained Earnings |
6,010 |
Salaries and Wages Payable |
8,700 |
Instructions:
1. Prepare a properly classified balance sheet.
2. Assume net income of $200,000 and sales of $5,000,000. Compute the current ratio, debt ratio, and asset turnover.