Jerrison Company operates a wholesale hardware business. The following balance sheet accounts and balances are available for Jerrison at December 31, 2011.

Required:
1. Prepare a classified balance sheet for Jerrison at December 31, 2011.
2. Compute Jerrison€™s working capital and current ratio at December 31, 2011.
3. If Jerrison€™s management is concerned that a large portion of its inventory is obsolete and cannot be sold, how will Jerrison€™s liquidity be affected?

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Accounts payable Accounts receivable $ 65,100 Trucks $106,100 21,600 12,600 187,900 41,000 32,700 150,000 5,700 95,500 Income taxes payable Interest payable lon data processing equipment) 172,400 Inventory Accumulated depreciation on buildin Accumulated depreciation (on trucks Bonds payable (due 2015 Building (warehousel Cash Common stock Equipment, data processing 216,800 Investments llongHerml 31,200 Notes payable (due June 1, 2012 000 Prepoid insurance for 4 months) 419,900 Ried eamings, 12/31/2011 11400 Salaries payable 150,000 Investments Ishortterm) 309,000 14,400 21,000