John Tell created Tennis Rackets, a proprietorship, in 2015 Tennis Rackets produced a post-closing trial balance on December 31, 2018, which included the following: CREDIT $ 60,000 Tennis Rackets Post-Closing Trial Balance December 31, 2018 ACCOUNT DEBIT Cash $ 30,000 Accounts Receivable 80,000 Supplies 5,000 Prepaid Insurance 6,000 Office Equipment 130,000 Accumulated Amortization, Office Equipment Building 300,000 Accumulated Amortization, Building Land 400,000 Accounts Payable Salary Payable Uneamed Service Revenue Note Payable, Long Term Mortgage Payable John Tell, Capital Total $951.000 45,000 49,000 80,000 25,000 55,000 450,000 182.000 $ 951.000 Required: A. Prepare a December 31, 2018 classified balance sheet for Tennis Rackets. B. Calculate Tennis Rackets' current ratio and debt ratio at December 31, 2018 Note that 1 year ago, the current ratio was 125, and the debt ratio was 0.96. Did Tennis TRU Open Learning ACCT 1211 Account IAS Rackets' ability to pay debts improve or deteriorate during 2018? Question 4 (20 marks) A B This Last Year Year Current Ratio 11 TRU Open Learning ACC Accounting Debt Ratio