Refer back to Problem 3-63A.

Requirements
1. Use the Valley Services data in Problem 3-63A to prepare the company’s classified balance sheet at January 31, 2018.

2. Calculate Valley’s net working capital, current ratio, and debt ratio at January 31, 2018, rounding to two decimal places. At January 31, 2017, net working capital was $19,500, the current ratio was 1.80, and the debt ratio was 0.15. Did Valley’s ability to pay both current and total debts improve or deteriorate during the fiscal year? Evaluate Valley’s debt position as strong or weak and give your reason.

Data from 3-63A.

The accounts of Valley Services, Inc., at January 31, 2018, are listed in alphabetical order.

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Accounts payable .. $14,000 2$ 400 Interest expense.. Note payable, long term... Other assets, long-term Prepaid expenses . Retained earnings, Accounts receivable. . 5,000 15,400 14,400 Accumulated depreciation, equipment . Advertising expense. .... 7,000 10,800 6,600 January 31, 2017.. Salary expense.. Salary payable. Service rev Cash. 26,000 4,500 13,600 26,300 2,300 96,000 2,400 . Common stock. . Current portion of long-term note payable.. 1,000 Depreciation expense-equipment 2,100 15,000 43,000 enue..... Supplies. . Supplies expense.. Unearned service revenue ... Dividends declared.. 4,500 2,700 Equipment.