Problem 13.1A Preparing classified financial statements. LO 13-1, 13-2, 13-3 Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm's worksheet for the year ended December 31, 2019. Credit $ Debit 34,100 500 11,800 86,000 $ 6,000 234,000 2,860 1,420 10,200 46,000 178,000 54,000 37,000 ACCOUNTS Cash Petty Cash Fund Notes Receivable, due 2020 Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Warehouse Supplies Office Supplies Prepaid Insurance Land Building Accumulated Depreciation- Building Warehouse Equipment Accumulated Depreciation- Warehouse Equipment Delivery Equipment Accumulated Depreciation- Delivery Equipment Office Equipment Accumulated Depreciation-office Equipment Notes Payable, due 2020 Accounts Payable Interest Payable Mortgage Payable Loans Payable, Long-term Charles Ronie, Capital (Jan. 1) Charles Ronie, Drawing Income Summary Sales 17,400 51,000 19,600 25,000 12,000 20,200 49,000 580 61,000 17,000 452,460 127,000 244,000 234,000 1,685,000 Sales Returns and Allowances 18,200 Interest Income 1,580 Purchases 767,000 Freight In 13,800 Purchases Returns and Allowances 8,440 Purchases Discounts 11,160 Warehouse Wages Expense 199,600 Warehouse Supplies Expense 7,100 Depreciation Expense-Warehouse 5,800 Equipment Salaries Expense-Sales 269,200 Travel and Entertainment Expense 21,500 Delivery Wages Expense 60,330 Depreciation Expense-Delivery 9,800 Equipment Salaries Expense-Office 70,600 Office Supplies Expense 4,000 Insurance Expense 6,200 Utilities Expense 9,290 Telephone Expense 6,520 Payroll Taxes Expense 59,000 Property Taxes Expense 5,600 Uncollectible Accounts Expense 5,800 Depreciation Expense-Building 9,000 Depreciation Expense-Office 4,000 Equipment Interest Expense 8,200 Totals $2,649,420 $2,649,420 Required: 1. Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses. 2. Prepare a statement of owner's equity for the year ended December 31, 2019. No additional investments were made during the period. 3. Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year. Analyze: What is the current ratio for this business? Required 1 Required 2 Required 3 Analyze Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses. SUPERIOR HARDWOOD COMPANY Income Statement Operating revenue Net sales Cost of goods sold Merchandise inventory, January 1, 2019 Delivered cost of purchases Net delivered cost of purchases Total merchandise available for sale Gross profit on sales Operating expenses Warehouse expenses Total warehouse expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative exp. Total operating expenses Income from operations Other income Other expenses Net nonoperating expenses Net income for year Required 1 Required 2 > Required 1 Required 1 Required 2 Required 2 Required 3 Required 3 Analyze Analyze Prepare a statement of owner's equity for the year ended December 31, 2019. No additional investments were made during the period. SUPERIOR HARDWOOD COMPANY Statement of Owner's Equity Required 1 Required 3 > Required 1 Required 2 Required 3 Analyze Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year. SUPERIOR HARDWOOD COMPANY Balance Sheet Assets Current assets Prepaid expenses Total current assets Plant and equipment Building Warehouse equipment Delivery equipment Office equipment Total plant and equipment Total assets Liability and Owner's Equity Current liabilities Total current liabilities Long-term liabilities Total long term liabilities Total liabilities Owner's equity Total liabilities and owner's equity Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Analyze What is the current ratio for this business? (Round your answer to 2 decimal places.) Current ratio to 1 Required 3 Analyze >