Selected accounts of Browne Irrigation Systems at December 31, 2012, follow: Requirements 1. Prepare the companys classified

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Selected accounts of Browne Irrigation Systems at December 31, 2012, follow:

Insurance expense Note payable, long-term Other assets Building Prepaid insurance Salary expense Salary payable Service

Requirements
1. Prepare the company€™s classified balance sheet in report form at December 31, 2012.
2. Compute the company€™s current ratio and debt ratio at December 31, 2012. At December 31, 2011, the current ratio was 1.83 and the debt ratio was 0.39. Did the company€™s ability to pay debts improve or deteriorate, or did it remain the same during2012?

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...
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Financial and Managerial Accounting

ISBN: 978-0132497978

3rd Edition

Authors: Horngren, Harrison, Oliver

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