Refer to Exercise 3-26A. The unadjusted trial balance and income statement amounts from the December 31 adjusted trial balance of Warfield Production Company follow.

Requirements
1. Use the data in the partial worksheet to prepare Warfield Production Company’s classified balance sheet at December 31 of the current year. Use the report format. First you must compute the adjusted balance for several of the balance-sheet accounts.
2. Compute Warfield Production Company’s net working capital, current ratio, and debt ratio at December 31. A year ago, net working capital was $6,400, the current ratio was 1.67, and the debt ratio was 0.40. Indicate whether the company’s ability to pay its debts—both current and total—improved or deteriorated during the currentyear.

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A1 Warfield Production Compamy Unadjusted Trial Balance From the Adjusted Trial Balance Account a Cash 14,250 Prepaid rent 1,800 5 Equipment 42,000 Accumulated depreciation, equipment Accounts payable Salary payable Unearned service revenue ,400 5,100 10,100 10 Income tax payable 1 Common stoc 1 Dividends Notes payable, long.term 16,000 8,600 8,500 Retained earnings 250 Service revenue 13,200 20600 Salary expense Rent expense 4,200 1,400 4,600 1,600 850 18 Depreciation expense 19 Income tax expense 20 Total 64,900 64,900 8,500