E4-17 Preparing a classified balance sheet and calculating the current ratio Learning Objectives 6 1. Total Assets $67,500 The adjusted trial balance of Melanie O'Mallie Dance Studio Company follows: Requirements 1. Prepare the classified balance sheet of Melanie O'Mallie Dance Studio Company at August 31, 2016. Use the report form. You must compute the ending balance of Mallie, Capital. 2. Compute O'Mallie's current ratio at August 31, 2016. One year ago, the current ratio was 1.25. Indicate whether O'Mallie's ability to pay current debts has improved, deteriorated, or remained the same