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.
3. As a user of the classified balance sheet, why would you want to know the current ratio or the debt to equity ratio?

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Account Name Cash Short-Term Investments Accounts Receivable Merchandise Inventory Notes Receivable Interest Payable Sales Supplies Office Supplies Deposit for Future Advertising Income Taxes Payable Long-Term Notes Payab Land Delivery Equipment Accumulated Depreciation-Delivery Equipment Building, Not in Use Accounts Payable Salaries Payable Prepaid Rent Prepaid Insurance Common Stock Retained Earnings Trademark Totals Debit 31,000 43,500 239,000 113,000 10,000 Credit 930 1,280 540 3,120 820 99,000 34,700 42,230 28,400 72,100 129,600 4,600 1,800 3,600 139,900 196,620 4,000 599,870 403,250