(Learning Objectives 1, 5: Analyzing liabilities) Mountainside Manors, Inc., builds environmentally sensitive structures. The company’s 20X1 revenues totaled $2,760 million, and at December 31, 20X1, the company had $650 million in current assets. The December 31, 20X1 and 20X0 balance sheets reported the liabilities and shareholders’ equity as follows:

■ writing assignment

❙ Requirements 1. Describe each of Mountainside Manors, Inc.’s liabilities and state how the liability arose.

2. What were the company’s total assets at December 31, 20X1? Was the company’s debt ratio at the end of 20X1 high, low, or in a middle range?