Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below
Question:
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.
Accounts Debit Credit
Cash $ 22,300
Petty Cash Fund 400
Notes Receivable, due 2020 10,000
Accounts Receivable 79,000
Allowance for Doubtful Accounts $4,200
Merchandise Inventory 216,000
Warehouse Supplies 2,680
Office Supplies 1,240
Prepaid Insurance 4,800
Land 28,000
Building 160,000
Accumulated DepreciationBuilding 43,200
Warehouse Equipment 28,000
Accumulated DepreciationWarehouse Equipment 12,000
Delivery Equipment 42,000
Accumulated DepreciationDelivery Equipment 16,000
Office Equipment 16,000
Accumulated DepreciationOffice Equipment 6,600
Notes Payable, due 2020 18,400
Accounts Payable 37,200
Interest Payable 400
Mortgage Payable 52,000
Loans Payable, Long-term 8,000
Charles Ronie, Capital (Jan. 1) 296,160
Charles Ronie, Drawing 125,200
Income Summary 226,000 216,000
Sales 1,701,000
Sales Returns and Allowances 16,400
Interest Income 1,400
Purchases 749,000
Freight In 12,000
Purchases Returns and Allowances 6,640
Purchases Discounts 9,360
Warehouse Wages Expense 181,600
Warehouse Supplies Expense 5,300
Depreciation ExpenseWarehouse Equipment 4,000
Salaries ExpenseSales 251,200
Travel and Entertainment Expense 19,700
Delivery Wages Expense 58,530
Depreciation ExpenseDelivery Equipment 8,000
Salaries ExpenseOffice 68,800
Office Supplies Expense 2,200
Insurance Expense 4,400
Utilities Expense 7,490
Telephone Expense 4,720
Payroll Taxes Expense 50,000
Property Taxes Expense 3,800
Uncollectible Accounts Expense 4,000
Depreciation ExpenseBuilding 7,200
Depreciation ExpenseOffice Equipment 2,200
Interest Expense 6,400
Totals $2,428,560 $2,428,560
Required:
- Make a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
- Make a statement of owner's equity for the year ended December 31, 2019. No additional investments were made during the period.
- Make 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?