CLASSIFIED BALANCE SHEET College Spirit sells sportswear with logos of major universities. At the end of 2009, the following balance sheet account balances were available.

Accounts payable $106,300 Accounts receivable 6,700 Accumulated depreciation on furniture and fixtures 21,700 Bonds payable 180,000 Cash 14,200 Common stock 300,000 Furniture and fixtures 88,000 Income taxes payable 11,400 Inventory, sportswear 479,400 Long-term investment in equity securities $110,000 Note payable, short-term 50,000 Prepaid rent, building (current) 54,000 Retained earnings, 12/31/2009 82,900 Required:
Prepare a classified balance sheet for College Spirit at December 31, 2009.
Compute College Spirit’s working capital and current ratio at December 31, 2009.
Comment on College Spirit’s liquidity.
Exercise