Refer to Problem P3-46

Problem P3-46

The accounts of Marciano Services Ltd. at March 31, 2020, are listed in alphabetical order.

1. Use the Marciano Lid. data in problem P3-46A to prepare the company's classified balance sheet at March 31, 2020. 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, 2020, rounding to two decimal places. At March 31, 2019, the current ratio was 1.30 and the debt ratio was 0.30.

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Accounts payable Accounts receivable Accumulated depreciation- equipment $14,700 Note payable, long term 16,500 Other assets..... 6.200 14.100 Prepaid expenses. 5,300 7,100 Retained earnings, March 31, 2019 20.200 Advertising expense 10,900 Salary expense. 17,800 Cash.... 7,500 Salary payable.. 2.400 Current portion of note payable. 800 Service revenue 94,100 Depreciation expense 1,900 Share capital... 9,100 Dividends 31,200 Supplies 3,800 Equipment 43,200 Supplies expense. 4,600 Insurance expense 600 Unearned service revenue.... 2,800