Following is a list of account titles and balances for Waite Investment Corporation as of

January 31, 2008.

Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 87,900

Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161,200

Accumulated Depreciation—Buildings . . . . . . . . . . . . . . . . . 149,700

Accumulated Depreciation—Machinery and Equipment . . . 121,300

Additional Paid-In Capital—Common Stock . . . . . . . . . . . . $612,000

Allowance for Doubtful Notes and Accounts Receivable . . 19,700

Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370,000

Cash Fund for Stock Redemption . . . . . . . . . . . . . . . . . . . . . 22,500

Cash in Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,320

Cash on Hand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,250

Claim for Income Tax Refund . . . . . . . . . . . . . . . . . . . . . . . . 5,100

Common Stock, $1 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000

Employees’ Income Taxes Payable . . . . . . . . . . . . . . . . . . . . . 4,260

Income Taxes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,900

Interest Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,890

Interest Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200

Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176,000

Investment Securities (trading) . . . . . . . . . . . . . . . . . . . . . . . . . 98,750

Investments in Undeveloped Properties . . . . . . . . . . . . . . . . . . 183,000

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201,000

Machinery and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145,000

Miscellaneous Supplies Inventory . . . . . . . . . . . . . . . . . . . . . . 5,600

Notes Payable (current) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,320

Notes Payable (due in 2013) . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,000

Notes Receivable (current) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,960

Preferred Stock, $5 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305,000

Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,800

Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,010

Salaries and Wages Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,700

Requirements:

1. Prepare a properly classified balance sheet.

2. Assume net income of $200,000 and sales of $5,000,000. Calculate the current ratio, debt ratio, and asset turnover.