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.