The information that follows is from Rodriguezs Tools Companys April 30, 2014, post-closing trial balance. Required 1.

The information that follows is from Rodriguez’s Tools Company’s April 30, 2014, post-closing trial balance.

Required
1. Prepare a classified balance sheet for Rodriguez’s Tools.
2. Compute Rodriguez’s Tools’ 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?

Transcribed Image Text:

Debit 31,000 43,500 239,000 113,000 10,000 Account Name Cash Short-Term Investments Accounts Receivable Merchandise Inventory Notes Receivable Interest Payable Sales Supplies Office Supplies Deposit for Future Advertising Long-Term Notes Payable Land Delivery Equipment Accumulated Depreciation-Delivery Equipment Building, Not in Use Accounts Payable Salies Payable Prepaid Rent Prepaid Insurance C. Rodriguez, Capital Trademark Credit 930 1,280 540 3,120 99,000 34,700 42,230 28,400 72,100 129,600 4,600 1,800 3,600 337,340 4,000