The following accounts are taken from the financial statements of Trump Entertainment Resorts, Inc., at its December 31, 2010, year-end. (Amounts are in thousands.)
Operating Expenses................................... $ 117,995
Salaries Payable........................................... 24,338
Interest Expense.......................................... 21,078
Accounts Payable......................................... 40,862
Other Current Liabilities................................. 74,248
Food and Beverage Revenue............................ 46,775
Cash......................................................... 85,585
Accounts Receivable...................................... 26,094
Other Current Assets.................................... 129,343
Equipment................................................ 463,988
Long-term Note Payable................................ 366,752
Contributed Capital............................................ 11
Retained Earnings....................................... 198,799
Required:
1. Prepare a classified balance sheet at December 31, 2010.
2. Using the balance sheet, indicate whether the total assets of Trump Entertainment Resorts, Inc., at the end of the year were financed primarily by liabilities or stockholders' equity.
3. Were the current assets sufficient to cover the current liabilities at December 31, 2010? How can you tell?