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Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firms worksheet for the year

Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firms worksheet for the year ended December 31, 2019.

ACCOUNTS Debit Credit
Cash $ 23,800
Petty Cash Fund 500
Notes Receivable, due 2020 11,500
Accounts Receivable 93,000
Allowance for Doubtful Accounts $ 5,700
Merchandise Inventory 231,000
Warehouse Supplies 2,830
Office Supplies 1,390
Prepaid Insurance 9,300
Land 43,000
Building 175,000
Accumulated DepreciationBuilding 52,200
Warehouse Equipment 35,500
Accumulated DepreciationWarehouse Equipment 16,500
Delivery Equipment 49,500
Accumulated DepreciationDelivery Equipment 19,000
Office Equipment 23,500
Accumulated DepreciationOffice Equipment 11,100
Notes Payable, due 2020 19,900
Accounts Payable 38,700
Interest Payable 550
Mortgage Payable 59,500
Loans Payable, Long-term 15,500
Charles Ronie, Capital (Jan. 1) 443,260
Charles Ronie, Drawing 126,700
Income Summary 241,000 231,000
Sales 1,679,000
Sales Returns and Allowances 17,900
Interest Income 1,550
Purchases 764,000
Freight In 13,500
Purchases Returns and Allowances 8,140
Purchases Discounts 10,860
Warehouse Wages Expense 196,600
Warehouse Supplies Expense 6,800
Depreciation ExpenseWarehouse Equipment 5,500
Salaries ExpenseSales 266,200
Travel and Entertainment Expense 21,200
Delivery Wages Expense 60,030
Depreciation ExpenseDelivery Equipment 9,500
Salaries ExpenseOffice 70,300
Office Supplies Expense 3,700
Insurance Expense 5,900
Utilities Expense 8,990
Telephone Expense 6,220
Payroll Taxes Expense 57,500
Property Taxes Expense 5,300
Uncollectible Accounts Expense 5,500
Depreciation ExpenseBuilding 8,700
Depreciation ExpenseOffice Equipment 3,700
Interest Expense 7,900
Totals $ 2,612,460 $ 2,612,460

Required:

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.

Prepare a statement of owners equity for the year ended December 31, 2019. No additional investments were made during the period.

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?

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