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Question - The following items are taken from the financial statements of SRW Company for 2012:
Cash
$375,000
Accounts Receivable
125,000
Prepaid Insurance
100,000
Accounts Payable
88,000
Unearned Service Revenue
15,000
Equipment, net of accumulated depreciation
177,000
Common Stock
Retained Earnings 12/31/2011
106,000
Long-term debt
336,500
Service revenue
225,000
Cost of Goods Sold
62,500
Rent expense
30,000
Supplies expense
8,000
Insurance expense
18,000
Instructions(a) Please create a classified Balance Sheet in good form for the year ended 2012.
(b) Please calculate the current ratio.
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