[The following information applies to the questions displayed below.) Cougar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles $22,000 Accounts payable 3,800 Accrued liabilities payable 4,800 Notes payable (short-term) 30,000 Notes payable (long-term) 1,000 Common stock 40,000 Additional paid-in capital 97,000 Retained earnings 3,200 $ 19,000 2,600 7,200 43,000 9,500 85,500 35,000 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8.900 cash. b. Lent $5,100 to a supplier who signed a two-year note. c. Purchased equipment that cost $24,000; paid $4,500 cash and signed a one-year note for the balance. d. Hired a new president at the end of the year. The contract was for $76,000 per year plus options to purchase company stock at a set price based on company performance. e. Issued an additional 1,200 shares of $0.50 par value common stock for $19,000 cash. f. Borrowed $16,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $1,900 cash. h. Built an addition to the factory for $20,000; paid $9,000 in cash and signed a three-year note for the balance. 1. Returned defective equipment to the manufacturer, receiving a cash refund of $2,300. Required: 1. & 2. Post the current year transactions to T-accounts for each of the accounts on the balance sheet. (Two items have been given in the cash T-account as examples). Cash 22,000 Beg. Bal. Beg. Bal. Investments (short-term) 3,800 8,900 8,900 (a) 5,100 (b) 4,500 (c) End. Bal. 12,700 19,000 16,000 1,900 (9) End. Bal. 36.600 Accounts Receivable 4,800 Inventory 30,000 Beg. Bal. Beg. Bal. End. Bal. 4,800 End. Bal. 30,000 Notes Receivable (long-term) 1,000 Equipment 40,000 Beg. Bal. Beg. Bal. End. Bal. 1,000 End. Bal. 40,000 Factory Building 97,000 Intangibles 3,200 Beg. Bal. Beg. Bal. End. Bal. 97,000 End. Bal. 3,200 Accounts Payable 19.000 Accrued Liabilities Payable 2,600 Beg. Bal. Beg. Bal. End. Bal. 19,000 End. Bal. 2,600 Notes Payable (short-term) 7,200 16,000 (1) Long-Term Notes Payable 43,000 Beg. Bal. Beg. Bal. End. Bal. 23,200 End. Bal. 43,000 Common Stock Additional Paid-in Capital 85,500 Beg. Bal. 9,500 Beg. Bal. End. Bal. 9,500 End. Bal. 85,500 Retained Earnings 35,000 Beg. Bal. End. Bal. 0 35,000 4. Prepare a trial balance at December 31 of the current year. COUGAR PLASTICS COMPANY Trial Balance At December 31 Debit Credit Account Titles Cash Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles Accounts payable Accrued liabilities payable Notes payable (short-term) Notes payable (long-term) Common stock Additional paid-in capital Retained earnings Totals $ 0 $ 0 5. Prepare a classified balance sheet at December 31 of the current year. COUGAR PLASTICS COMPANY Balance Sheet Assets Liabilities 0 Stockholders' Equity $ 0 $ 0 6. Compute the current ratio for the current year. (Round your answer to 2 decimal places.) Current ratio