You are the Controller at Gander, Inc. and are responsible for preparing and analyzing the balance sheet for December 31, 2018, the end of the companys fiscal year. Gander Inc. had the following balance sheet balances at December 31, 2017:

During 2018, the following occurred:

1. Customer sales on account $400,000.
2. Received payments from customers in cash $380,000.
3. Purchased merchandise on credit $220,000.
4. Paid cash to vendors $230,000.
5. Costs related to merchandise sold $170,000.
6. Operating expenses were paid in cash $80,000.

There is additional information to consider.

• A note payable for $46,200 was issued on June 30, 2018 and is due in two years on June 30, 2020. Interest in the amount of 10% is paid annually on June 30th.
• Depreciation on the plant assets for the year is $20,000.
• The original cost of the plant assets was $300,000.

Required:

1. Using the below information, prepare a classified balance sheet for 2018 for Gander.
   • Please type out the journal entries you made for 2018 prior to showing the 2018 balance sheet. You do not have to show the posting to the T accounts or any trial balances.
2. Calculate the current ratio and the debt to equity ratio.

GANDER, INC. Balance Sheet As of December 31, 2017 Cash $13,596 Accounts payable $44,616 Accounts receivable $24,948 Inventories $130,360 Plant assets (net) $150,000 Common stock $250,000 Retained earnings $24.288 Total Assets $318,904 Total Liabilities & Equity $318,904 YOUR COMPANY Balance Sheet As of December 31, 2018 Current Ratio ASSETS Current assets: Cash Accounts receivable Inventories Total current assets Debt to Equity Ratio Property, plant, and equipment: Plant Assets (net) Less: Accumulated depreciation Net Plant Assets TOTAL ASSETS LIABILITIES Current Liabilities: Accounts payable Interest payable Notes payable Total Current Liabilities STOCKHOLDERS' EQUITY Common Stock Retained Earnings Total Stockholders' Equity TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY