The information that follows is from Cullen€™s Hardware Company€™s June 30, 2014, post-closing trial balance.

Required
1. Prepare a classified balance sheet for Cullen€™s Hardware Company.
2. Compute Cullen€™s Hardware€™s current ratio and debt to equity ratio. (Round to one decimal place.)
3. As a user of the classified balance sheet, why would you want to know the current ratio or the debt to equityratio?

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Debit 42,800 34,300 1,280 145,000 2,100 4,800 287,000 Account Name Cash Short-Term Investments Sales Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Accounts Receivable Office Supplies E. Cullen, Capital Notes Receivable Land Delivery Equipment Accumulated Depreciation-Delivery Equipment Trademark Accounts Payable Salaries Payable Deposit for Future Advertising Interest Payable Long-Term Notes Payable Building, Not in Use Credit 440 412,660 10,000 31,400 43,200 28,400 4,000 124,600 7,700 3,680 840 80,000 44,200 654,200 654,200