Prepare classified balance sheet for cullen hardware company

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Reference no: EM13913790

The information that follows is from Cullen's Hardware Company's June 30, 2014, post-closing trial balance.

Total assets: $625,800

Account name

Debit

Credit

 

Cash

42,800

 

 

Short-Term Investments

34,300

 

 

Sales Supplies

1,280

 

 

Merchandise Inventory

145,000

 

 

Prepaid Rent

2,100

 

 

Income Taxes Payable

 

3,780

 

Prepaid Insurance

4,800

 

 

Accounts Receivable

287,000

 

 

Office Supplies

440

 

 

Common Stock

 

290,000

 

Notes Receivable

10,000

 

 

Land

31,400

 

 

Delivery Equipment

43,200

 

 

Accumulated Depreciation-Delivery Equipment

 

28,400

 

Trademark

4,000

 

 

Accounts Payable

 

124,600

 

Salaries Payable

 

7,700

 

Deposit for Future Advertising

3,680

 

 

Interest Payable

 

840

 

Retained Earnings

 

118,880

 

Long-Term Notes Payable

 

80,000

 

Building, Not in Use

  44,200

 

 

Totals

654,200

654,200

Required:

1. Prepare a classified balance sheet for Cullen's Hardware Company.

2. Business application- Compute Cullen's Hardware's current ratio and debt to equity ratio. (Round to one decimal place.)

3. Business application- As a user of the classified balance sheet, why would you want to know the current ratio or the debt to equity ratio?

Verified Expert

The overall work has been done to analyze the ratio of the company through determining teh balance sheet.

Reference no: EM13913790

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