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, 20X1.

ACCOUNTS	Debit			Credit
Cash	$	24,000
Petty Cash Fund		400
Notes Receivable, due 20X2		11,700
Accounts Receivable		95,000
Allowance for Doubtful Accounts				$	5,900
Merchandise Inventory		233,000
Warehouse Supplies		2,850
Office Supplies		1,410
Prepaid Insurance		9,900
Land		45,000
Building		177,000
Accumulated DepreciationBuilding					53,400
Warehouse Equipment		36,500
Accumulated DepreciationWarehouse Equipment					17,100
Delivery Equipment		50,500
Accumulated DepreciationDelivery Equipment					19,400
Office Equipment		24,500
Accumulated DepreciationOffice Equipment					11,700
Notes Payable, due 20X2					20,100
Accounts Payable					38,900
Interest Payable					570
Mortgage Payable					60,500
Loans Payable, Long-term					16,500
Charles Ronie, Capital (Jan. 1)					455,960
Charles Ronie, Drawing		126,900
Income Summary		243,000			233,000
Sales					1,683,000
Sales Returns and Allowances		18,100
Interest Income					1,570
Purchases		766,000
Freight In		13,700
Purchases Returns and Allowances					8,340
Purchases Discounts					11,060
Warehouse Wages Expense		198,600
Warehouse Supplies Expense		7,000
Depreciation ExpenseWarehouse Equipment		5,700
Salaries ExpenseSales		268,200
Travel and Entertainment Expense		21,400
Delivery Wages Expense		60,230
Depreciation ExpenseDelivery Equipment		9,700
Salaries ExpenseOffice		70,500
Office Supplies Expense		3,900
Insurance Expense		6,100
Utilities Expense		9,190
Telephone Expense		6,420
Payroll Taxes Expense		58,500
Property Taxes Expense		5,500
Uncollectible Accounts Expense		5,700
Depreciation ExpenseBuilding		8,900
Depreciation ExpenseOffice Equipment		3,900
Interest Expense		8,100
Totals	$	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 owners 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?