P2. The information that follows is from Jason's Hardware Company's June 30, 2014, post-closing trial balance....

 

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P2. The information that follows is from Jason's Hardware Company's June 30, 2014, post-closing trial balance. Account Name Cash Short-Term Investments Notes Receivable Accounts Receivable Merchandise Inventory Prepaid Rent Prepaid Insurance Sales Supplies Office Supplies Deposit for Future Advertising Building, Not in Use Land Delivery Equipment Accumulated Depreciation-Delivery Equipment Trademark Accounts Payable Salaries Payable Interest Payable Long-Term Notes Payable J. Smith, Capital Debit 32,000 33,000 10,000 276,000 145,000 1,600 4,800 1,280 440 3,680 49,600 23,400 41,200 4,000 626,000 Credit 28,400 114,600 5,200 840 80,000 396,960 626,000 REQUIRED 1. Prepare a classified balance sheet for Jason's Hardware Company. 2. BUSINESS APPLICATION Compute Jason's Hardware's current ratio and debt to equity ratio. (Round to one decimal place.) 3. BUSINESS APPLICATION As a user of the classified balance sheet, why would you want to know the current ratio or the debt to equity ratio? P2. The information that follows is from Jason's Hardware Company's June 30, 2014, post-closing trial balance. Account Name Cash Short-Term Investments Notes Receivable Accounts Receivable Merchandise Inventory Prepaid Rent Prepaid Insurance Sales Supplies Office Supplies Deposit for Future Advertising Building, Not in Use Land Delivery Equipment Accumulated Depreciation-Delivery Equipment Trademark Accounts Payable Salaries Payable Interest Payable Long-Term Notes Payable J. Smith, Capital Debit 32,000 33,000 10,000 276,000 145,000 1,600 4,800 1,280 440 3,680 49,600 23,400 41,200 4,000 626,000 Credit 28,400 114,600 5,200 840 80,000 396,960 626,000 REQUIRED 1. Prepare a classified balance sheet for Jason's Hardware Company. 2. BUSINESS APPLICATION Compute Jason's Hardware's current ratio and debt to equity ratio. (Round to one decimal place.) 3. BUSINESS APPLICATION As a user of the classified balance sheet, why would you want to know the current ratio or the debt to equity ratio?

Answer rating: 100% (QA)

1 Current assets Cash CLASSIFIED BALANCE SHEET Cullens Ha... View the full answer