the following Dec 31 year-end adjusted trial balance is for Heath Wilmer Co.The credit balance in Heath Wilmer Owner Capital at the beginning of the year, January 1, was $320,000. The Owner, Heath Wilmer, invested an additional $300,000 during the current year. The land held for future expansion was also purchased during the current year.

Heath Wilmer Co. Adjusted Trial balance December 31
Cash	$90,000
Account receceivable	18,000
Prepaid insurance	6,000
Office supplies	2,000
Investments in stocks	150,000
Land held for future expasion	300,000
Office equipment	18,000
Accumulated depreciation-Equipment		$4,000
Building	600,000
Accumulated depreciation-Building		170,000
Intangible assets-licensing agreement	50,000
Accounts payable		17,800
Salaries Payable		16,400
Long-term note payable		224,000
Heath Wilmer, Capital		620,000
Health Wilmer, Withdrawals	60,000
Service fees earned		470,800
Salaries expense	180,000
Insurance expense	12,000
Rent expense	25,000
Depreciation expense-Equipment	2,000
Depreciation expense-Building	10,000
Totals	$1,523,000	$1,523,000

Required:

1. Prepare a classified year-end balance sheet. (Note: A $22,000 installment on the long-term note payable is due within one year.)

2. Using the information presented:

(a) Calulate the current ratio. Comment on the ability of Heath Wilmer Co. to meets its short-term debts.

(b) Calulate the debt ratio and comment on the financial position and risk analysis of Heath Wilmer Co.

(c) Using the account balances to analyze the financial position of Heath Wilmer Co., why would the owner need to invest an additional $300,000 in the bussiness when the business is already profitable and the owner had an existing capital balance of $320,000?