Refer to Exercise.

Requirements
1. Use the data in the partial worksheet to prepare Draper Production Company€™s classified balance sheet at December 31 of the current year. Use the report format. First you must compute the adjusted balance for several of the balance-sheet accounts.
2. Compute Draper Production Company€™s current ratio and debt ratio at December 31. A year ago, the current ratio was 1.70 and the debt ratio was 0.30. Indicate whether the company€™s ability to pay its debts both current and total improved or deteriorated during the currentyear.

Draper Production Company Unadjusted Trial Balance From the Adjusted Trial Balance Account 14,800 1,000 44,000 Prepaid rent. Accumulated depreciation. 3,100 Accounts payable. . Salary payable Unearned service revenue Income tax payable Notes payable, long-term Commons Retained earnings Dividends Service revenu Salary expense Rent expense Depreciation expense Income tax expense Total 9,300 13,000 8,500 14,100 1,300 13,600 20,100 4,600 1,000 1,300 1,000 7.800 20,100 66,700 66,700