Classifi ed Balance Sheet The following balance sheet items, listed in alphabetical order, are available from the records of Ruth Corporation at December 31, 2010:

Accounts payable $ 18,255 Accounts receivable 23,450 Accumulated depreciation—

automobiles 22,500 Accumulated depreciation—

buildings 40,000 Automobiles 112,500 Bonds payable, due December 31, 2014 160,000 Buildings 200,000 Capital stock, $10 par value 150,000 Cash 13,230 Income taxes payable $ 6,200 Interest payable 1,500 Inventory 45,730 Land 250,000 Long-term investments 85,000 Notes payable, due June 30, 2011 10,000 Offi ce supplies 2,340 Paid-in capital in excess of par value 50,000 Patents 40,000 Prepaid rent 1,500 Retained earnings 311,095 Salaries and wages payable 4,200 Required 1. Prepare in good form a classifi ed balance sheet as of December 31, 2010.

2. Compute Ruth’s current ratio.

3. On the basis of your answer to (2), does Ruth appear to be liquid? What other information do you need to fully answer that question?

AppendixLO1