An alphabetical list of the adjusted trial balance accounts for North Country Rentals after its first year of operations ending March 31, 2020, is shown below:

Required

1. Calculate the capital balance as it would appear on the March 31, 2020, balance sheet.

2. Prepare a classified balance sheet. Assume that $215,000 of the Long-Term Notes Payable will be paid during the year ended March 31, 2021. Also, $55,000 of the notes receivable will be collected by March 31, 2021.

3. Calculate the current ratio and the debt to equity ratio (round to two decimal places). Analysis Component: North Country shows an adjusted balance in the Long Term Notes Payable account of $362,000 at March 31, 2020. Review the balance sheet just prepared and make a reasonable assumption about what the $362,000 was most logically used for by North Country. Explain whether or not this is generally considered a good use of borrowed funds and why.

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Adjusted Account Account Balance Accounts payable. $ 9,100 Accumulated depreciation, building. 25,000 Accumulated depreciation, furniture 3,500 Advertising expense 16,200 ..... Brand name 3,000 . Building. . 591,000 17,000 Cash. Depreciation expense, building. 25,000 Depreciation expense, furniture. 3,500 42,800 Furniture. 10,260 Interest expense Interest payable. 900 Janitorial expense. 41,000 Land. 110,000 Long-term notes payable. 362,000 143,000 Notes receivable, due 2023. Office salaries expense.. 126,625 Office supplies. 700 Office supplies expense 6,100 Prepaid advertising.. Rent revenue. Rent receivable. 400 398,400 16,000 Salaries payable. 2,625 Utilities expense. 36,720 Wyett North, capital. 415,780 Wyett North, withdrawals. 28,000 "Assume all accounts have a normal balance.