Jerrison Company operates a wholesale hardware business. The fol

Jerrison Company operates a wholesale hardware business. The following balance sheet accounts and balances are available for Jerrison at December 31, 2009.

Accounts payable .....................$ 62,100

Accounts receivable ..................... 96,300

Accumulated depreciation on data processing equipment ..... 172,400

Accumulated depreciation on warehouse ............. 216,800

Accumulated depreciation on warehouse operations equipment .... 31,200

Bonds payable (due 2013) ................. 200,000

Building, warehouse .................... 419,500

Cash ........................... 8,400

Common stock ....................... 250,000

Equipment, data processing ................. 309,000

Equipment, warehouse operations .............. 106,100

Income taxes payable ................... 21,600

Interest payable ..................... 12,200

Inventory (merchandise) ................... 187,900

Land .......................... 41,000

Long-term investments in equity securities ............ 31,900

Notes payable (due June 1, 2010) .............. 50,000

Prepaid insurance (for 4 months) ............... 5,700

Retained earnings, 12/31/2009 ................ ?

Salaries payable ..................... 14,400

Short-term investments in marketable securities .......... 21,000


Required:

1. Prepare a classified balance sheet for Jerrison Company at December 31, 2009.

2. Compute Jerrison’s working capital and current ratio at December 31, 2009. Comment on Jerrison’s liquidity.


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...