Following is a list of account titles and balances for Zaldo Investment Corporation as of January 31,2002.

Instructions:
1. Prepare a properly classified balance sheet.
2. Assume net income of \($200,000\) and sales of \($5,000,000.\) Compute current ratio, debt ratio, and asset turnover.

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Accounts Payable Accounts Receivable. Accumulated Depreciation-Buildings. Accumulated Depreciation-Machinery and Equipment. Additional Paid-In Capital-Common Stock... Allowance for Doubtful Notes and Accounts Receivable Buildings... Cash Fund for Stock Redemption. Cash in Banks Cash on Hand. Claim for Income Tax Refund. Common Stock, $1 par. Employees' Income Taxes Payable... Income Taxes Payable Interest Payable... $ 85,900 153,100 151,700 127,000 662,000 16,500 410,000 17,500 9,120 97,300 4,500 50,000 4,780 29,200 5,390 Interest Receivable 900 Inventory. 211,300 Investment Securities (trading) 102,500 Investments in Undeveloped Properties 175,000 Land 188,000 Machinery and Equipment.. 145,000 Miscellaneous Supplies Inventory 6,200 Notes Payable (current) 58,260 Notes Payable (due in 2007). 38,000 Notes Receivable (current) 22,470 Preferred Stock, $5 par. 320,000 Prepaid Insurance. 3,500 Retained Earnings (debit balance). 11,740 Salaries and Wages Payable... 9,400