The adjusted trial balance for Carey Corporation at December 31, 2014, contained the following:

Of the lease liability amount, $22,800 is due within the next year. Total payments on the instalment note payable in 2015 will be $24,400, of which $7,480 is for interest. Carey reported profit for the year ended December 31, 2014, of $173,500. No common shares were issued during the year.
Instructions
(a) Prepare the liabilities and shareholders' equity section of the balance sheet.
(b) Calculate Carey's debt to assets and interest coverage ratios for the year ended December 31, 2014.
(c) Based on the ratios calculated in part (b), what conclusions can you make about Carey's solvency?
Taking It Further
Are long-term creditors more concerned with solvency or liquidity? Explain.

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Accounts payable Accounts receivable Allowance for doubtful accounts Bonds payable, due 2019 Interest payable Common shares Dividends Income tax expense $ 76,000 89,000 4,450 1,000,000 30,000 425,000 40,000 74,353 Income tax payable Note payable Interest expense Lease liability Note receivable, due 2016 Retained earnings, January 1, 2014 Unearned revenue 37,176 158,666 49,568 99,869 65,000 608,820 25,000