The balance sheet accounts and amounts of the Baggett Company as of December 31, 2007 are shown in random order as follows:

Required
1. Prepare a December 31, 2007 balance sheet for the Baggett Company.
2. Compute the debtratio.

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Debit Credit (3,800 Preium on preferred stodk Debit Credit (7,900) (1,600) (23,000) 57,400 5,000 (2,600) 4,300 (9,700) (18,300) (18,600) (1,400) (12,700) Account Income taxes payable Prepaid items Premium on common stock 1,800 Allowance for doubtful accounts (9,300 Bonds payable (due 2017) 12,200 Buildings (6,000) Sinking fund to retire bonds payable 16,400 Advances from customers (long-term) 12,600 Cash (1,400) Accumulated depreciation: equipment Notes payable (due 2010) Notes receivable (due 2009) Accounts receivable Premium on bonds payable Accounts payable Inventory Accumulated depreciation: buildings (21,000) ges payable Patents (net) Equipment (13,100) Retained earnings Preferred stock, $100 par 7,400 4,600 28,700 Common stock, $10 par