Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firms worksheet for the year ended December 31, 20X1.

ACCOUNTS	Debit	Credit
Cash	$	22,200
Petty Cash Fund		500
Notes Receivable, due 20X2		9,900
Accounts Receivable		78,000
Allowance for Doubtful Accounts				$	4,100
Merchandise Inventory		215,000
Warehouse Supplies		2,670
Office Supplies		1,230
Prepaid Insurance		4,500
Land		27,000
Building		159,000
Accumulated DepreciationBuilding					42,600
Warehouse Equipment		27,500
Accumulated DepreciationWarehouse Equipment					11,700
Delivery Equipment		41,500
Accumulated DepreciationDelivery Equipment					15,800
Office Equipment		15,500
Accumulated DepreciationOffice Equipment					6,300
Notes Payable, due 20X2					18,300
Accounts Payable					37,100
Interest Payable					390
Mortgage Payable					51,500
Loans Payable, Long-term					7,500
Charles Ronie, Capital (Jan. 1)					285,860
Charles Ronie, Drawing		125,100
Income Summary		225,000			215,000
Sales					1,703,000
Sales Returns and Allowances		16,300
Interest Income					1,390
Purchases		748,000
Freight In		11,900
Purchases Returns and Allowances					6,540
Purchases Discounts					9,260
Warehouse Wages Expense		180,600
Warehouse Supplies Expense		5,200
Depreciation ExpenseWarehouse Equipment		3,900
Salaries ExpenseSales		250,200
Travel and Entertainment Expense		19,600
Delivery Wages Expense		58,430
Depreciation ExpenseDelivery Equipment		7,900
Salaries ExpenseOffice		68,700
Office Supplies Expense		2,100
Insurance Expense		4,300
Utilities Expense		7,390
Telephone Expense		4,620
Payroll Taxes Expense		49,500
Property Taxes Expense		3,700
Uncollectible Accounts Expense		3,900
Depreciation ExpenseBuilding		7,100
Depreciation ExpenseOffice Equipment		2,100
Interest Expense		6,300
Totals	$	2,416,340		$	2,416,340

Required:

1. Prepare a classified income statement for the year ended December 31, 20X1. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
2. Prepare a statement of owners equity for the year ended December 31, 20X1. No additional investments were made during the year.
3. Prepare a classified balance sheet as of December 31, 20X1. The mortgage payable extends for more than a year.

Analyze: What is the current ratio for this business?