The adjusted trial balance of Melanie O’Mallie Dance Studio Company follows

Requirements 

1. Prepare the classified balance sheet of Melanie O’Mallie Dance Studio Company at August 31, 2024. Use the report form. You must compute the ending balance of Retained Earnings.
2. Compute O’Mallie’s current ratio at August 31, 2024. One year ago, the current ratio was 1.76. Indicate whether O’Mallie’s ability to pay current debts has improved, deteriorated, or remained the same

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MELANIE O'MALLIE DANCE STUDIO COMPANY Trial Balance August 31, 2024 Account Title Cash Office Supplies Prepaid Rent Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Unearned Revenue Notes Payable (long-term) Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment Supplies Expense Utilities Expense Total Balance Debit $ 16,000 1,800 1,500 49,000 1,100 3,600 1,100 400 500 1,100 $ 76,100 Credit $ 5,700 4,800 100 5,000 5,400 18,000 19,000 18,100 $ 76,100