The accounts of Valley Haven Services Ltd. at March 31, 2020, are listed in alphabetical order.

1. Prepare the company's classified balance sheet at March 31, 2020. Show captions for total assets, total liabilities, and total shareholder's equity.

$ $ 6,100 13,500 6,000 Accounts payable Accounts receivable Accumulated depreciation -equipment Advertising expense Cash Current portion of note payable Depreciation expense. Dividends. Equipment. Insurance expense 15,000 Note payable, long term 16,500 Other assets. Prepaid expenses. 6,800 Retained earnings, 10,800 March 31, 2019 7,600 Salary expense. Salary payable 22,000 17,900 2,600 94,100 10,850 600 Service revenue 3,600 1,500 Share capital. 35,000 Supplies 43,300 Supplies expense 550 Unearned service revenue 4,500 2,700 Requirement 2. Evaluate Valley Haven's debt position as strong or weak, giving your reason. Assess whether Valley Haven's ability to pay both current and total debts improved or deteriorated during 2020. In order to complete your evaluation, compute Valley Haven's current and debt ratios at March 31, 2020, rounding to two decimal places. At March 31, 2019, the current ratio was 1.35, and the debt ratio was 0.30. (Round the ratios to two decimal places.) Compute Valley Haven's current ratio at March 31, 2020 Current ratio Now calculate Valley Haven's debt ratio at March 31, 2020. Debt ratio based on both the current ratio of 1.61 and debt ratio of 0.32. Both are than the norm for successful companies. A comparison with ratios in 2019 indicates the current ratio Valley Haven Ltd.'s debt position is has and the debt ratio has had