1. Use the data in the partial worksheet to prepare Winwood Production Company's classified balance sheet at December 31 of the current year. Use the report format. First you must calculate the adjusted balance for several of the balance-sheet accounts. 2. Calculate Winwood Production Company's net working capital, current ratio, and debt ratio at December 31. A year ago, net working capital was $7,720, the current ratio was 1.92, and the debt ratio was 0.20. Indicate whether the company's ability to pay its debts-both current and total-improved or deteriorated during the current year. Winwood Production Company Account Cash Prepaid rent Equipment Unadjusted Trial Balance Adjusted Trial Adjustments Balance Debit Credit Debit Credit Debit Credit 14,920 2,000 48,000 at Accumulated depreciation- equipment 3,400 Accounts payable 4,500 Salary payable Unearned service revenue 8,600 Income tax payable Notes payable, long-term 15,000 L Common stock 8,600 Retained earnings 19,020 Dividends 1,200 Service revenue 13,200 19,200 Salary expense 4,500 4,900 Rent expense 1,700 2,300 Depreciation Expense-equipment Income tax expense Total $ 72,320 72,320 900 1,200 $ 9,300 $ 19,200 11 166 15 6,000 Credit Date Accounts Debit Dec 31 Unearned Service Revenue Service Revenue Dec 31 Salary Expense Salary Payable Dec 31 Rent Expense 6,000 400 400 600 Prepaid Rent 600 Dec 31 Depreciation Expense 900 Accumulated Depreciation-Equipment 900 Dec 31 Income Tax Expense 1,200 Income Tax Payable 1,200