Refer back to Problem 3-70B.

1. Use the Cookie Lapp eTravel data in Problem 3-70B to prepare the company's classified balance sheet in report form at December 31, 20X5. Label total assets, total liabilities, and stockholders' equity.

2. Compute Cookie Lapp's current ratio and debt ratio at December 31, 20X5. At December 31, 20X4, the current ratio was 1.50 and the debt ratio was 0.45. Did Lapp's ability to pay both current and total liabilities improve or deteriorate during 20X5?

In Problem 3-70

The accounts of Cookie Lapp eTravel, Inc., at December 31, 20X5, are listed in alphabetical order.

Transcribed Image Text:

Accounts payable Accounts receivable.. Accumulated depreciation- $5,100 Note pay able, long-term. $10,600 3,600 Retained earnings, 5,300 24,600 3,900 11,600 December 31, 20X4... Advertising expense....2,200 Salary expense 7,300 Salary pa yable Common stoc Depreciation expense Dividends Furniture Interest expense 1,300 Supplies 47,400 Supplies expense.. 41,400 Unearned service 7,700 5,700 800 revenu 3,600