Refer back to Problem 3-80B.

Requirements
1. Prepare the company€™s classified balance sheet in report form at March 31, 2012. Show captions for total assets, total liabilities, and total liabilities and stockholders€™ equity.
2. Compute Cool River€™s net working capital, current ratio, and debt ratio at March 31, 2012, rounding to two decimal places. At March 31, 2011, the net working capital was $11,000, the current ratio was 1.30, and the debt ratio was 0.35. Did Cool River€™s ability to pay both current and total liabilities improve or deteriorate during fiscal 2012? Evaluate Cool River€™s debt position as strong or weak and give yourreason.

Accounts payable Accounts receivable Accumulated depreciation- 14,400 Interest expense....S 400 5,600 14,000 ....5,500 17,000 Note payable, long term... 6,900 Prepaid expenses 7,400 Other assets... equipment. Advertising expense.11,400 Retained earnings, Common stock13,200 Salary expense Current portion o 17,700 2,600 700 Service revenue.91,500 3,000 4,800 f n Salary payable. payable Dividends Equipment 32,500 Supplies expense.. 42,800 Unearned service revenue...