Student Exam

(TCO A) The following items are taken from the financial statements of PQR Company for 2013:

Cash	$100,000
Inventory	150,000
Accounts Payable	123,000
Accounts Receivable	40,000
Supplies	10,000
Salaries Payable	30,000
Unearned Revenue	75,000
Intangible assets	78,000
Property, plant, and equipment, net	156,000
Long term debt	50,000
Common Stock	25,000
Additional Paid in Capital	175,000
Retained Earnings, 12/31/2012	13,000
Service revenue	402,000
Cost of Goods Sold	250,000
Rent expense	48,000
Supplies expense	25,000
Insurance expense	36,000

Instructions: (1) Create a classified balance sheet in good form for the year ended 2013. (30 points) (2) Calculate the current ratio and debt ratio and explain your findings. (6 points) (Points : 36)