The following balance sheet items, listed in alphabetical order, are from the records of Singer Company at

Question:

The following balance sheet items, listed in alphabetical order, are from the records of Singer Company at December 31, 2010:

Accounts payable ..............$34,280

Accounts receivable .............$26,700

Accumulated depreciation—buildings ........$40,000

Accumulated depreciation—equipment ......$12,500

Bonds payable, due December 31, 2014 ......$250,000

Buildings ...................$150,000

Capital stock, $1 par value ..........$200,000

Cash.................... $60,790

Equipment ...................$84,500

Income taxes payable .............$7,500

Interest payable.................$2,200

Land ....................$250,000

Marketable securities ..............$15,000

Merchandise inventory..............$112,900

Notes payable, due April 15, 2009 ........$6,500

Office supplies ................. $400

Paid-in capital in excess of par value .........$75,000

Patents ....................$45,000

Prepaid rent .................$3,600

Retained earnings ................$113,510

Salaries payable .................$7,400

1. Prepare a classified balance sheet as of December 31, 2010

2. Compute Singer’s current ratio

3. On the basis of your answer to (2), does Singer appear to be liquid? What other information do you need to fully answer that question?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Par Value
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