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, 20X1. Credit $ Debit 24,000 400 11,700 95,000 $ 5,900 233,000 2,850 1,410 9,900 45,000 177,000 53,400 36,500 17,100 50,500 19,400 24,500 11,700 20,100 38,900 570 60,500 16,500 455,960 ACCOUNTS Cash Petty Cash Fund Notes Receivable, due 20x2 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 20X2 Accounts Payable Interest Payable Mortgage Payable Loans Payable, Long-term Charles Ronie, Capital (Jan. 1) Charles Ronie, Drawing Income Summary Sales Sales Returns and Allowances Interest Income Purchases Freight In Purchases Returns and Allowances Purchases Discounts Warehouse Wages Expense Warehouse Supplies Expense Depreciation Expense-Warehouse Equipment Salaries Expense-Sales Travel and Entertainment Expense Delivery Wages Expense Depreciation Expense-Delivery Equipment Salaries Expense-Office Office Supplies Expense Insurance Expense Utilities Expense Telephone Expense Payroll Taxes Expense Property Taxes Expense Uncollectible Accounts Expense Depreciation Expense-Building Depreciation Expense-Office Equipment Interest Expense Totals 126,900 243,000 233,000 1,683,000 18,100 1,570 766,000 13,700 8,340 11,060 198,600 7,000 5,700 268, 200 21,400 60,230 9,700 70,500 3,900 6,100 9,190 6,420 58,500 5,500 5,700 8,900 3,900 8,100 $2,637,000 $2,637,000 Required: 1. Prepare a classified income statement for the year ended December 31, 20X1. 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, 20X1. No additional investments were made during the year. 3. Prepare a classified balance sheet as of December 31, 20X1. The mortgage payable extends for more than a year. Analyze: What is the current ratio for this business? Prepare a classified income statement for the year ended December 31, 20X1. 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, 20X1 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 expenses Total operating expenses Income from operations Other income Other expenses Net nonoperating expenses Net income for year Prepare a statement of owner's equity for the year ended December 31, 20X1. No additional investments were made during the year. SUPERIOR HARDWOOD COMPANY Statement of Owner's Equity Prepare a classified balance sheet as of December 31, 20X1. 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 What is the current ratio for this business? (Round your answer to 2 decimal places.) Current ratio to 1