The information that follows is from Cullen's Hardware Company's June 30, 2014, post-closing trial balance.

Required
1. Prepare a classified balance sheet for Cullen's Hardware Company.
2. Compute Cullen'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 equity ratio?

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Account Name Cash Short-lerm Investments Sales Supplies Merchandise Inventory Prepaid Rent Income Taxes Payable Prepaid Insurance Accounts Receivable Office Supplies Common Stock Notes Receivable Land Delivery Equipment Accumulated Depreciation-Delivery Equipment Trademark Accounts Payable Salaries Payable Deposit for Future Advertising Interest Payable Retained Earnings Long-Term Notes Payab Building, Not in Use Totals Debit 42,800 34,300 1,280 145,000 2,100 Credit 3,780 4,800 287,000 440 290,000 10,000 31,400 43,200 28,400 4,000 124,600 7,700 3,680 840 118,880 80,000 44,200 654,200 654,200