Jerrison Company operates a wholesale hardware business. The following balance sheet accounts and balances are available for Jerrison at December 31, 2019.

Required:

1. Prepare a classified balance sheet for Jerrison at December 31, 2019.

2. Compute Jerrison's working capital and current ratio at December 31, 2019.

3. If Jerrison's management is concerned that a large portion of its inventory is obsolete and cannot be sold, how will Jerrison's liquidity be affected?