An alphabetical list of the adjusted trial balance accounts for North Country Rentals after its first year of operations ending March 31, 2023, is shown below:

*Assume all accounts have a normal balance.

Required
1. Calculate the capital balance as it would appear on the March 31, 2023, balance sheet.
2. Prepare a classified balance sheet. Assume that $215,000 of the Long-Term Notes Payable will be paid during the year ended March 31, 2024. Also, $55,000 of the notes receivable will be collected by March 31, 2024.
3. Calculate the current ratio and the debt to equity ratio (round to two decimal places).

Analysis Component:
North Country shows an adjusted balance in the Long-Term Notes Payable account of $362,000 at March 31, 2023. Review the balance sheet just prepared and make a reasonable assumption about what the $362,000 was most logically used for by North Country. Explain whether or not this is generally considered a good use of borrowed funds and why.

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Account Accounts payable Accumulated depreciation, building Accumulated depreciation, furniture Advertising expense Brand name Building Cash Depreciation expense, building Depreciation expense, furniture Furniture Interest expense Interest payable Janitorial expense Land Long-term notes payable Notes receivable, due 2026 Office salaries expense Office supplies Office supplies expense Prepaid advertising Rent revenue Rent receivable Salaries payable Utilities expense Wyett North, capital Wyett North, withdrawals Adjusted Account Balance* $ 9,100 25,000 3,500 16,200 3,000 591,000 17,000 25,000 3,500 42,800 10,260 900 41,000 110,000 362,000 143,000 126,625 700 6,100 400 398,400 16,000 2,625 36,720 415,780 28,000