(a) Use the information in the adjusted trial balance reported in Exercise 4-11 to compute the current ratio for Wilson Trucking.

(b) Assuming Spalding (a competitor) has a current ratio of 1.5, which company is better able to pay its short-term obligations?

Data from exercise 4-11

Use the information in the adjusted trial balance reported in Exercise 4-10 to prepare Wilson Trucking Company’s classified balance sheet as of December 31.

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Account Title Cash .... Accounts receivable..... Office supplies Trucks.. Accumulated depreciation-Trucks... Land.... Accounts payable.. Interest payable..... Long-term notes payable. K. Wilson, Capital.. K. Wilson, Withdrawals. Trucking revenue.. Depreciation expense-Trucks Salaries expense Office supplies expense.. Interest expense.... Totals... Debit $ 8,000 17,500 3,000 172,000 85,000 20,000 23,500 61,000 8,000 12,000 $410,000 Credit $ 36,000 12,000 4,000 58,000 170,000 130,000 $410,000