Following are the December 31, 2000, account balances for Siraco Company.

Cash $1,950 Accounts receivable.. 2,500 Supplies 1,800 Equipment.. 11,275 Accounts payable 3,450 Wages payable 250 Dividends paid 1,500 Capital stock 775 Retained earnings, January 1, 2000 12,000 Revenues... 10,000 Miscellaneous expense 1,550 Supplies expense 3,700 Wages expense... 2,200 1. Prepare a classified balance sheet as of December 31, 2000. 2. Interpretive Question: On the basis of its 2000 earnings, was this company's decision to pay dividends of $1,500 a sound one?