Refer back to Problem 3-60A.

1. Use the Meadowbrook Services data in Problem 3-60A to prepare the company's classified balance sheet at March 31, 20X3.

2. Compute Meadowbrook's current ratio and debt ratio at March 31, 20X3, rounding to 2 decimal places. At March 31, 20X2, the current ratio was 1.30 and the debt ratio was 0.30. Did Meadbrook's ability to pay both current and total debts improve or deteriorate during 20X3? Evaluate Meadowbrook's debt position as strong or weak and give your reason.

In Problem 3-60

The accounts of Meadowbrook Services, Inc., at March 31, 20X3, are listed in alphabetical order.

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600 Accounts receivable..16,500 Note payable, long-term...6,200 14,100 5,300 Accounts payable..$14,700 Interest expense... Accumulated depreciation- Advertising expense Other a 7,100 Prepaid expenses. 10,900 Retained earnings, 7,500 9,100 March 31, 20X2.20,200 Salary expens17,800 2,400 Current portion of note Depreciation expense ..1,900 Supplies Dividends 3,800 31,200 Supplies expense....4,600 43,200 Unearned service revenue... 2,800