Following is a list of account titles and balances for Pennington Investment Corporation as of January 31,

Question:

Following is a list of account titles and balances for Pennington Investment as of January 31, 2011.
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 92,400
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158,200
Accumulated Depreciation—Buildings . . . . . . . . . . . . . . . . . . . . . . . . . 139,500
Accumulated Depreciation—Machinery and Equipment . . . . . . . . . . . 116,300
Additional Paid-In Capital—Common Stock . . . . . . . . . . . . . . . . . . . . 605,000
Allowance for Doubtful Notes and . . . . . . . . . . 24,700
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320,000
Cash Fund for Stock Redemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,500
Cash in Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,320
Cash on Hand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96,250
Claim for Income Tax Refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
Common Stock, $1 par. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,000
Employees’ Income Taxes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,360
Income Taxes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
Interest Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,790
Interest Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,700
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201,500
Investment Securities (trading) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,750
Investments in Undeveloped Properties . . . . . . . . . . . . . . . . . . . . . . . . . 193,500
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213,000
Machinery and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165,500
Miscellaneous Supplies Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,200
Notes Payable (current) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,320
Notes Payable (due in 2016) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,800
Notes Receivable (current) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,960
Preferred Stock, $5 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285,000
Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,900
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,410
Salaries and Wages Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,700

Instructions:
1. Prepare a properly classified balance sheet.
2. Assume net income of $300,000 and sales of $7,000,000. Compute the current ratio, debt ratio, and asset turnover.

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