Instructions:

( a) Prepare theasset section only of the classified balance sheet in good form.

(b) Calculate the current ratio for Target.

1. The numbers of authorized shares are as follows: 600,000 common and 40,000 preferred.
2. Target is a publicly traded company and uses fair value OCI (FV-OCI) in accounting for its long term investments. Target uses fair value net income (FV-NI) in accounting for its temporary investments.
3. $25,000 of the Bond Payable is due in the next year.

Target Inc.

Accounts receivable	97,360
Accounts payable	490,000
Accumulated Depreciation - building	270,200
Accumulated Depreciation - equipment	292,000
Accumulated other comprehensive income	50,000
Bonds payable	285,000
Building	1,640,000
Cash	360,000
Common shares (40,000 issued)	400,000
Equipment	1,470,000
Goodwill (at fair value, carrying amount $115,000)	125,000
Inventories	239,300
Investments -long term, (Fair value 75,000)	32,500
Land	480,000
Long-term rental obligations	480,000
Notes payable to banks (demand)	265,000
Notes receivable (short term)	445,700
Payroll taxes payable	177,591
Preferred shares (30,000 issued)	150,000
Prepaid expenses	43,960
Rent payable ( short-term)	45,000
Retained Earnings	?
Taxes payable	98,362
Investments FV-NI (fair value 60,500)	106,000
Unsecured notes payable (long-term)	1,600,000