The classified balance sheet for Thorn, Inc. as of December 31,2014, is presented next.

Requirements
1. Calculate Thorn€™s debt ratio as of December 31, 2014.
2. What percentage of Thorn€™s assets belong to the shareholders?
3. Would you be willing to extend credit to Thorn, Inc.? Why or why not?

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Thorn, Inc. Balance Sheet December 31, 2014 ASSETS LIABILITIES Current Assets: Cash Accounts Receivable Supplies Prepaid Rent Total Current Assets Current Liabilities: 6,600 Accounts Payable $ 10,200 1,900 17,700 10,000 39,800 10,100 Salary Payable 1,300 Unearned Service Revenue 2,800 Note Payable 20,800 Fixed Assets: Land Equipment Less: Accumulated Total Curent Liabilities Long-Term Debt: Bonds Payable 30,000 110,000 140,000 55,000 Mortgage Note Payable $ 40,000 Total Long-Term Debt Depreciation, Equipment 14,000 26,000 Building 225,000 SHAREHOLDERS' EQUITY Less: Accumulated Total Fixed Assets Total Assets 8,000 49,000 57,000 Common Shares Depreciation, Building 90,000 135,000 Retained Earnings 216,000 Total Shareholders' Equity Total Liabilities and 236,800Shareholders' Equity $236,800