College Spirit sells sportswear with logos of major universities. At the end of 2011, the following balance sheet account balances were available.

Required:
1. Prepare a classified balance sheet for College Spirit at December 31, 2011.
2. Compute College Spirit€™s working capital and current ratio at December 31, 2011.
3. Comment on College Spirit€™s liquidity as of December 31, 2011.

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Accounts payable Acoounts receivable Accumulated depreciation Bonds payable Cash Common stock Furniture $11,400 481,400 110,900 50,000 54,000 84,500 e taxes payable 6,700 Inventory 23,700 Long-term investmant 180,000 Note payable, short-term 13,300 Prepoid rent (current 00,000 Retained eamings, 12/31/2011 88,000