$2-12($a$)$ For J&W Graphics Supply, compute the

current ratio. Is this a financially healthy

company? Explain.

J&W Graphics Supply Balance Sheet Data $($thousands$)$

Assets

Cash

$$1,740$

Accounts receivable

Inventories

$2,500$

Bad debt provision

$900$

$-75$

Liabilities

Accounts payable

$1,050$

Notes payable

$500$

Accrued expenses

$125$

$($b$)$ The entries on J&W$\text{'}$s complete balance

sheet include the following:

Construct J&W$\text{'}$s balance sheet.

$($c$)$ What are J&W$\text{'}$s values for total assets,

total liabilities, and total earnings?