The adjusted trial balance of Bresnehan Bottle and Glass, Inc., as of June 30, 1997 (its year-end) contains the following information:

\section*{Instructions}

(a) Prepare in good form a classified balance sheet for Bresnehan Bottle \& Glass.

(b) Calculate the following balance sheet relationships: current ratio, debt-to-total assets ratio, and working capital.

(c) Assume that Bresnehan has come to you, as vice president of Neighborhood National Bank, seeking a \(\$ 450,000\) loan to help defray the costs of upgrading some of its bottling machinery. Would you be willing to approve the loan? Is there any additional information you would like to have before making your decision?
Prepare a multiple-step income statement and analyze profitability.
(SO 7)

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Accounts payable Accounts receivable Accumulated Accumulated depreciation-Buildings depreciation-Equipment Bonds payable Buildings-Manufacturing plant and offices Cash $ 478,000 420,000 180,000 577,500 1,750,000 680,000 79,000 Common stock 500,000 Equipment 1,650,000 Income taxes payable 45,000 Interest payable 70,000 Interest receivable 21,000 Inventories 845,000 Investment in Todd, Inc., bonds (held-to-maturity-long-term) 600,000 Land 200,000 Mortgage payable (on manufacturing plant-long-term) 310,000 Notes payable (short-term) 200,000 Prepaid advertising 9,500 Prepaid insurance 19,000 Retained earnings (June 30, 1997) 447,000 Supplies 34,000