Reference no: EM131643115

Question - The following items are taken from the financial statements of PQR Company for 2013:

Cash $100,000

Inventory 150,000

Accounts Payable 123,000

Accounts Receivable    40,000

Supplies 10,000

Salaries Payable 30,000

Unearned Revenue 75,000

Intangible assets 78,000

Property, plant, and equipment, net 156,000

Long term debt 50,000

Common Stock 25,000

Additional Paid in Capital 175,000

Retained Earnings, 12/31/2012 13,000

Service revenue 402,000

Cost of Goods Sold 250,000

Rent expense 48,000

Supplies expense 25,000

Insurance expense 36,000

Instructions:

(1) Create a classified balance sheet in good form for the year ended 2013.

(2) Calculate the current ratio and debt ratio and explain your findings.