The adjusted trial balance of North Shore Outfitters Inc., as of October 31, 1997 (its year-end) contains the following information:

\section*{Instructions}

(a) Prepare in good form a classified balance sheet for North Shore Outfitters.

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

(c) Assume that North Shore Outfitters has come to you, as the senior loan officer of Lake Shore Credit Union, seeking a \(\$ 500,000\) loan to help defray the costs of replacing much of its rental camping gear and canoes. Would you be willing to approve the loan? Is there any additional information you would like to have before making your decision?

Transcribed Image Text:

Accumulated Accumulated Accounts payable Accounts receivable depreciation-Buildings depreciation-Equipment $162,000 15,000 144,000 715,000 Bonds payable 600,000 Buildings Offices and cabins 660,000 Cash 36,000 Common stock 300,000 Equipment 840,000 Income taxes payable 56,250 Interest payable 30,000