Refer to problem P3-46A.

1. Use the Marciano Ltd. data in problem P3-46A to prepare the company's classified balance sheet at March 31, 2017. Show captions for total assets, total liabilities, and shareholders' equity.

2. Evaluate Marciano's debt position as strong or weak, giving your reason. Assess whether Marciano's ability to pay both current and total debts improved or deteriorated during 2017. In order to complete your evaluation, compute Marciano's current and debt ratios at March 31, 2017, rounding to two decimal places. At March 31, 2016, the current ratio was 1.30 and the debt ratio was 0.30.

Data from P3-46A.

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Accounts payable Accounts receivable Accumulated depreciation_ 14,700 Note payable, long term 16,500 Other assets 6,200 14,100 5,300 Prepaid expenses 7,100 Retained earnings, March 31, 2016.. equipment Advertising expense Cash Current portion of note payable Depreciation expense Dividends Equipment Insurance expense 10,900 Salary expense 7,500 Salary payable 1,900 Share capital 43,200 Supplies expense 17,800 2,400 94,100 9,100 3,800 4,600 2,800 800 Service revenue 31,200 Supplies 600 Unearned service revenue