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Classified Balance Sheet Jerrison Company operates a wholesale hardware business. The following balance sheet accounts and balances are available for Jerrison at December 31 Accounts

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Classified Balance Sheet Jerrison Company operates a wholesale hardware business. The following balance sheet accounts and balances are available for Jerrison at December 31 Accounts payable $ 65,100 Equipment, data processing $309,000 Accounts receivable 95,500 Income taxes payable 150,000 Accumulated depreciation Interest payable 12,600 on bullding) 216,800 Inventory 187,900 Accumulated depreciation Investments (long-term) 32,700 (on data processing equipment) 172,400 Investments (short-term) 19,000 Accumulated depreciation 31,200 Land 41,000 (on trucks) Notes payable (due in 6 months) 21,600 Bands payable (due in 4 years) 200,000 Prepaid insurance (for 4 months) 5,700 Bullding (warehouse) 419,900 Retained earnings, Dec. 31 12,400 Salaries payable 14,400 Common stock 150,000 Trucks 106,100 Cash Required: 1. Prepare a classified balance sheet for Jerrison at December 31 Jerrison Company Balance Sheet December 31 Assets Current assets Required 1. Prepare a classified balance sheet for Jerrison at December 31. Jerrison Company Balance Sheet December 31 Assets Current assets: Cash 12,400 Investments (short-term) 19,000 Accounts receivable 95,500 Prepaid insurance 5,700 Inventory 187,900 320,500 Total current assets Long-term investments: Investment 32,700 Property, plant, and equipment: Land $1,000 Building 419,900 Less: Accumulated depreciation 216,800 203,100 Building, net Trucks 106,100 Less: Accumulated depreciation 31,200 Trucks, net Equipment, net Total property, plant, and equipment Total assets Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Stockholders' Equity Total current liabilities Long-term liabilities: Total liabilities Stockholders. Equity Total stockholders' equity Total liabilities and stockholders' equity 2. Compute Jerrison's working capital and current ratio at Decem 31. Round the current ratio answer to two decimal places. Working Capital Current Ratio 3. Conceptual Connection: It Jerrison's management is concerned that a large portion of its inventory is obsolete and cannot be sold, how will Jerrison's liquidity be affected? If a large portion of inventory cannot be sold, Jerrison will most likely generate sufficient cash flow to pay its obligations as they become due: D Nay

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