The Sky Blue Corporation has the following adjusted trial balance at December 31.

	Debit			Credit
Cash	$	1,230
Accounts Receivable		2,000
Prepaid Insurance		2,300
Notes Receivable (long-term)		3,000
Equipment		12,000
Accumulated Depreciation				$	2,600
Accounts Payable					5,420
Salaries and Wages Payable					1,000
Income Taxes Payable					2,900
Unearned Revenue					600
Common Stock					2,400
Retained Earnings					1,000
Dividends		300
Sales Revenue					42,030
Rent Revenue					300
Salaries and Wages Expense		21,600
Depreciation Expense		1,300
Utilities Expense		4,220
Insurance Expense		1,400
Rent Expense		6,000
Income Tax Expense		2,900
Total	$	58,250		$	58,250

1.

Prepare a classified balance sheet at December 31. (Amounts to be deducted should be indicated by a minus sign.)

2.

Are the Sky Blue Corporation's assets financed primarily by debt or equity?

	a. Debt
	b. Equity