Question: Refer to Exercise 3 36B The unadjusted trial balance and income

Refer to Exercise 3-36B. The unadjusted trial balance and income statement amounts from the December 31 adjusted trial balance of Terrell Production Company follow:

1. Use the data in the partial worksheet to prepare Terrell Production Company’s classified balance sheet at December 31 of the current year. Use the report format. First you must compute the adjusted balance for several of the balance-sheet accounts.
2. Compute Terrell Production Company’s net working capital, current ratio, and debt ratio at December 31. A year ago, the net working capital was $7,000, the current ratio was 1.72, and the debt ratio was 0.40. Indicate whether the company’s ability to pay its debts—both current and total—improved or deteriorated during the currentyear.

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