Refer back to Problem 3-71B.

Requirements
1. Use the Meadowbrook Services data in Problem 3-71B to prepare the company’s classified balance sheet at January 31, 2018.

2. Calculate Meadowbrook’s net working capital, current ratio, and debt ratio at January 31, 2018, rounding to two decimal places. At January 31, 2017, the net working capital was $16,700, the current ratio was 1.75, and the debt ratio was 0.25. Did Meadowbrook’s ability to pay both current and total liabilities improve or deteriorate during the fiscal year? Evaluate Meadowbrook’s debt position as strong or weak and give your reason.

Data from Problem 3-71B.

The accounts of Meadowbrook Service, Inc., at January 31, 2018, are listed in alphabetical order.

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Accounts payable . $ 10,000 Interest expense... 200 Accounts receivable.. Note payable, long-term... Other assets, long-term .. Prepaid expenses . Retained earnings, 1,000 15,600 13,900 5,000 Accumulated depreciation, equipment .. Advertising expense.. 7,100 11,200 22,000 1,500 Cash.. January 31, 2017 Salary expense.. Salary payable.. 13,700 27,800 Common stock.. Current portion of long term note payable. 2,000 95,500 6,400 5,000 Service revenue. 2,200 Depreciation expense-equipment 2,100 13,000 43,000 Supplies. . Supplies expense.. . Unearned service revenue .. Dividends declared... Equipment... 3,000