CLASSIFIED BALANCE SHEET Jerrison Company operates a wholesale hardware business. The following balance sheet accounts and balances are available for Jerrison at December 31, 2009.

Accounts payable $ 62,100 Accounts receivable 96,300 Accumulated depreciation on data processing equipment 172,400 Accumulated depreciation on warehouse 216,800 Accumulated depreciation on warehouse operations equipment 31,200 Bonds payable (due 2013) 200,000 Building, warehouse 419,500 Cash 8,400 Common stock 250,000 Equipment, data processing 309,000 Equipment, warehouse operations 106,100 Income taxes payable 21,600 Interest payable 12,200 Inventory (merchandise) 187,900 Land 41,000 Long-term investments in equity securities 31,900 Notes payable (due June 1, 2010) 50,000 Prepaid insurance (for 4 months) 5,700 Retained earnings, 12/31/2009 ?

Salaries payable 14,400 Short-term investments in marketable securities 21,000 Required:

Prepare a classified balance sheet for Jerrison Company at December 31, 2009.

Compute Jerrison’s working capital and current ratio at December 31, 2009. Comment on Jerrison’s liquidity.

Exercise