The following information is from the June 30, 2011, post-closing trial balance of Mike's Hardware Company.

Required
1. From the information provided, prepare a classified balance sheet for Mike's Hardware Company.
2. Compute Mike's Hardware's current ratio and debt to equity ratio.
3. As a user of the classified balance sheet, why would you want to know the current ratio or the debt to equityratio?

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Debit S 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 Account Name Credit Cash Short Term Invesmens Notes Recivable Accounts Receivable Merchandise Inventory Prepaid Rent Prepaid Insurance Sales Supplics Oflice Supplies Deposit for Fure Adverising Building, Not in Use Land Delivery Equipment Accumulated Depreciation-Delivery Equipmen Trademark Accounts Payable Salaries Payable nierest Pavable Long Term Noes Pavable M. Loan, Capital S 28.400 4,000 114,600 5,200 840 80,000 396,960