Lee Delivery Company was organized at the beginning of Year 1. The following transactions occurred during the year: a. Received $41,500 cash from the organizers in exchange for shares in the new company. b. Purchased land for $16,300 and signed a one-year note (at a 6 percent annual interest rate). c. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $10,600 each; paid $5,300 cash and signed a promissory note for the balance, payable over the next three years (at an annual interest rate of 7 percent). d. Sold one-fourth of the land for $4,075 to Birkins Moving, which promised to pay in six months. e. Paid $2,300 cash to a truck repair shop for a new motor for one of the trucks. (Hint: Increase the account you used to record the purchase of the trucks since the usefulness of the truck has been improved.) f. Traded the other truck and $6,300 cash for a new one. The old truck's fair value is $10,600. g. Shareholder Jonah Lee paid $27,800 cash for a vacant lot (land) for his personal use. h. Collected the amount of the note due from Birkins Moving in (d). i. Paid one-third of the principal of the note due for the delivery trucks in (c). 2-a. Prepare a classified statement of financial position for Lee Delivery Company at the end of Year 1. 2-b. Compute the current ratio at that date. (Round the final answer to 2 decimal places.) 3-a. Compute the company's current ratio for Years 1, 2, and 3. (Round the final answers to 2 decimal places.) 4. At the beginning of Year 4, Lee Delivery Company applied to your bank for a $50,000 short-term loan to expand the business. The vice-president of the bank asked you to review the information and make a recommendation on lending the funds based solely on the results of the current ratio. What recommendation would you make to the bank's vice-president about lending the money to Lee Delivery Company? Should not extend loan Should extend Ioan