The following accounts are taken from the financial statements of Facebook Inc. at September 30, 2016. (Amounts are in millions.)

Required

1. Prepare a classified balance sheet at September 30, 2016.

2. Using the balance sheet, indicate whether the total assets of Facebook Inc. at the end of the year were financed primarily by liabilities or by stockholders’ equity.

3. Were the current assets sufficient to cover the current liabilities at September 30, 2016? Show the ratio calculation (rounded to two decimal places) that indicates this.

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$ 2,600 Accounts Payable Accounts Receivable 3,100 Cash 6,000 15,700 Common Stock Equipment 7,900 Income Tax Expense 790 Interest Expense Notes Payable (long-term) 3,000 Prepaid Rent Retained Earnings 1,100 38,400 Service Revenue 7,000 Short-Term Investments 20,100 Software 21,500