Refer to Exercise 4-22.

Requirements 

1. After solving Exercise 4-22, use the data in that exercise to prepare the classified balance sheet of Swift Sign Company at April 30 of the current year. Use the report form. You must compute the ending balance of Rob Swift, Capital.

2. Compute Swift's current ratio and debt ratio at April 30. One year ago, the current ratio was 1.50 and the debt ratio was 0.30 , Indicate whether Swift's ability to pay current and total debts has improved, deteriorated, or remained the same during the current year.

Exercise 4-22

The adjusted trial balance and the income statement amounts from the April work sheet of Swift Sign Company follow:

Transcribed Image Text:

Account Title Adjusted Trial Balance Income Statement Cash Supplies Prepaid rent Equipment $14,200 2,400 1,100 52,000 Accumulated depreciation Accounts payable $ 6,000 4,600 Salary payable 400 Unearned service revenue 4,200 Long-term note payable 5,000 Rob Swift, capital 39,800 Rob Swift, withdrawals 1,000 Service revenue 17,400 17,400 Salary expense 3,800 $ 3,800 Rent expense 1,400 1,400 Depreciation expense 300 300 Supplies expense 400 400 Utilities expense 800 800 $77,400 $77,400 6,700 17,400 Net income or net loss P $17,400 $17,400