The trial balance of the Parton Wholesale Company contained the following accounts at December 31, 2007 the end of the companys calendar year.

PARTON WHOLESALE COMPANY
Trial Balance
31-Dec-07
	Debit		Credit
Cash	$ 34,400
Accounts Receivable	36,600
Merchandise Inventory (Beginning)	62,400
Land	92,000
Buildings	197,000
Accumulated Depreciation-Buildings			$ 54,000
Equipment	83,500
Accumulated Depreciation-Equipment			42,400
Notes Payable			50,000
Accounts Payable			37,500
Common Stock			200,000
Retained Earnings			67,800
Dividends	10,000
Sales			886,100
Sales Discounts	4,600
Purchases	725,100
Purchase Discounts			16,000
Freight-in	12,400
Salaries Expense	69,800
Utilities Expense	9,400
Repair Expense	5,900
Gas and Oil Expense	7,200
Insurance Expense	3,500
	$ 1,353,800		$ 1,353,800

Adjustment data:

Depreciation is $10,000 on buildings and $9,000 on equipment. (Both are administrative expenses.)

Interest of $7,000 is unpaid on notes payable at December 31.

Other data:

Merchandise inventory on hand at December 31, 2007 is $90,000.

Salaries are 80% selling and 20% administrative.

Utilities expense, repair expense, and insurance expense are 100% administrative.

$15,000 of the notes payable are payable next year.

Gas and oil expense is a selling expense.

The beginning balance of accounts receivable is $34,750.

The amount of total assets at the beginning of the year is $469,225.

1)Prepare a multiple-step income statement and a retained earnings statement for the year and a classified balance sheet as of December 31, 2007.

2)Journalize the closing entries.

3)Prepare a post-closing trial balance.

4)Prepare the following ratios and show all support for your computations: