The following accounts are taken from the financial statements of Knight Entertainments Resorts, Inc. at its September 30, 2017, year-end. (Amounts are in thousands.) 

Required:

1. Prepare a classified balance sheet at September 30, 2017. 

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

3. Were the current assets sufficient to cover the current liabilities at September 30, 2017? Show the ratio and calculations that indicate this.

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General Expenses $ 48,735 Salaries Payable 22,082 Interest Expense 32,066 Accounts Payable 58,462 Other Current Liabilities 115,663 Food and Beverage Revenue 12,065 Cash 88,761 Accounts Receivable 56,777 Other Current Assets 283,692 Property and Equipment 1,647,050 Long-Term Note Payable 1,835,192 Contributed Capital 32 Retained Earnings 44,849