HIJ Inc. has these account balances as of November 30, 2024:

Account	Amount
Cash	$20,000
Accounts Receivable	$11,000
Inventory	$18,000
Prepaid Expenses	$3,200
Building	$60,000
Accumulated Depreciation	$12,000
Accounts Payable	$14,000
Notes Payable	$8,000
Long-Term Debt	$28,000
Common Stock	$50,000
Retained Earnings	$28,200

Requirements:

1. Create a classified balance sheet.
2. Compute the quick ratio.
3. Evaluate the liquidity position of HIJ Inc.
4. Record adjusting entries for:
   • Depreciation expense: $6,000
   • Prepaid expenses adjustment: $1,600
5. Discuss the significance of adjusting entries in the preparation of financial statements.