Refer to Problem 3-56B.

1. Use the For You eTravel Inc. data in problem P3-56B to prepare the company's classified balance sheet at December 31, 2020. Show captions for total assets, total liabilities, and total liabilities and shareholders' equity.

2. Evaluate For You's debt position as strong or weak, giving your reason. Assess whether For You's ability to pay both current and total debts improved or deteriorated during 2020. In order to complete your evaluation, compute For You's current and debt ratios at December 31, 2020, rounding to two decimal places. At December 31, 2019, the current ratio was 1.50 and the debt ratio was 0.45

Problem 3-56

The accounts of For You eTravel Inc. at December 31, 2020, are listed in alphabetical order.

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Accounts payable Accounts receivable Advertising expense $ 5,100 Other assets cogerber ) anaberit 3,600 6,600 Retained earnings Accumulated depreciation-furniture. 11,600 December 31, 2019 5,300 2,200 Salary expe::se 24,600 Cash Depreciation expense 7,300 Salary payable 1,300 Service revenue 3,900 93,500 Dividends Furniture... Interest expense 47,400 Share capital 15,000 41,400 Supplies 7,700 800 Supplies expense 5,700 Note payable, long term $10,600 Unearned service revenue 3,600