The calendar year-end adjusted trial balance for Acosta Co. follows: 1. ACOSTA co Adjusted Trial Balance December 31 Cash $ 100,000 7,000 15,000 Accounts receivable Prepaid rent Prepaid Insurance... Office supplies. Office equipment Accumulated depreciation-Equipment . Building... Accumulated depreciation-Building. 9,000 3,300 8,000 $ 3,200 350,000 700,000 42,000 5,800 14,500 2,500 52,000 1,010,000 Accounts payable .. Salaries payabl.e. Interest payable Long-term note payable. Margarita Acosta, Capital. Margarita Acosta, Withdrawas.s. Service fees earned.. 200,500 370,800 90,000 5,200 5,000 800 Salaries expense Insurance expens Rent expense. Depreciation expense-Equipment.... Depreciation expense-Building. Totals. 7,000 Required (a) Prepare its income statement, statement of owner's equity (Assume the owner did not make any investments in the business this year.) (b) Prepare a classified year-end balance sheet. (Note: A $7,000 installment on the long-term note payable is due within one year) (c) Calculate the current ratio. Comment on the ability of Acosta Co. to meets its short-term debts. Short Answer Questions 40 marks 1. What are the financial statement analysis objectives? 2. The following are the steps in the accounting cycle. List them in the order in which they are completed: Prepare adjusted trial balance Post transactions Prepare an unadjusted 1 Journalize trapsacti Prepare the financial state Close the temporary accounts Adjust the ledger accounts Prepare a post-closing trial balance Analyze transactions al On January 1, a company borrobood sto,000 cash by signing a 9% installment note that is to be repaid with 4 annual year-end the total payments on this note knouptho $86,428. Explain. 3. of $2,607. While the amount borrowed equals $70,000, Define the return on total assets and explain how it is used to measure a company's financia performance 4