XERCISES-SET A LO1 IA. Preparing a Classified Balance Sheet From the following accounts, listed in alphabetical order, pre- pare a classified balance sheet for Oakland Wholesalers as of December 31. All accounts have normal balances $117.000 39,000 Accounts payable Accounts receivable... Building... Cash.. Common stock ....... $ 50.000 inventory 40.000 Land 67.000 Mortgage payable (long term) 28,000 Office supplies ...... 120.000 Retained earnings Salaries payable 1,000 7,000 LO2 2A. Multi-step Income Statement From the following accounts, listed in alphabetical order, prepare a multi-step income statement for Carl Distributors for the year ended December 31. All accounts have normal balances. Selling general and administrative expense.... Cost of goods sold .... Interest expense........... . .. $225,000 335,000 5,000 Sales revenue.... . Income tax expense..... $580.000 10,000 LO: SA. Evaluating the Liquidity and Solvency of a Company Identify whether the following statements are true or false. a. The current ratio is a measure of a firm's liquidity. b. Free cash flow is a measure of a firm's solvency. c. The return on sales ratio is a measure of a firm's liquidity. d. The debt-to-total-assets ratio is a measure of a firm's liquidity. A. Classified Balance Sheet The George Company collected the following information for the prepara tion of its December 31 classified balance sheet: LO Accounts receivable............... Cash............ Other current assets..... Accounts payable....... Long-term liabilities....... Other current liabilities ........... $22,000 17,000 25,000 25,000 60,000 19,000 Property, plant, and equipment. ........ Inventory. Other long-term assets... Common stock. Retained earnings .... $200,000 57.000 40.000 92,000 Prepare a classified balance sheet for the George Company. A. Profitability, Liquidity, and Solvency Ratios Alex Corporation gathered the following information from its financial statements: ti ......... Net sales...................................................... Net income.. .. Cash provided by operating activities. ... Expenditures on property, plant, and equipment ... Current assets ......... Current liabilities..... Total assets .......... Total liabilities ... $175,000 35.00 40.000 15.00 47.250 27.000 135,000 94.500 Using the above data, calculate the following: (1) return on sales ratio. (2) current ratio, (3) debt to total-assets ratio, and (4) free cash flow