Jerrison Company operates a wholesale hardware business. The following balance sheet accounts and balances are available for Jerrison at December 31, 2019.

Required:
1. Prepare a classified balance sheet for Jerrison at December 31, 2019.
2. Compute Jerrison's working capital and current ratio at December 31, 2019.
3. If Jerrison's management is concerned that a large portion of its inventory is obsolete and cannot be sold, how will Jerrison's liquidity be affected?

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Equipment, data processing Income taxes payable Interest payable Accounts payable Accounts receivable Accumulated depreciation (on building) Accumulated depreciation (on data processing equipment) Accumulated depreciation (on trucks) Bonds payable (due Aug. 30, 2023) Building (warehouse) Cash Common stock $ 6,100 95,500 $309,000 21,600 12,600 187,900 32,700 21,000 41,000 150,000 5,700 216,800 Inventory Investments (long-tem) Investments (short-term) Land 172,400 31,200 Notes payable (due June 1, 2020) Prepaid insurance (for 4 months) Retained eamings, 12/31/2019 Salaries payable 200,000 419,900 11,400 150,000 14,400 106,100 Trucks