Question

Classified Balance Sheet

The following balance sheet items, listed in alphabetical order, are available from the records of Ruth Corporation at December 31, 2017:

Accounts payable	$18,800		Income taxes payable	$6,010
Accounts receivable	21,180		Interest payable	1,495
Accumulated depreciation - automobiles	23,800		Inventory	42,330
Accumulated depreciation - buildings	43,900		Land	245,000
Automobiles	119,000		Long-term investments	93,445
Bonds payable, due December 31, 2021	172,000		Notes payable, due June 30, 2018	11,000
Buildings	219,500		Office supplies	2,495
Capital stock, $10 par value	144,000		Paid-in capital in excess of par value	52,000
Cash	13,745		Patents	36,000
			Prepaid rent	1,645
			Retained earnings	317,335
			Salaries and wages payable	4,000

Required:

1. Prepare in good form a classified balance sheet as of December 31, 2017.

Ruth Corporation
Balance Sheet
December 31, 2017
Assets
Current assets:
		$
Total current assets			$
Property, plant, and equipment:
		$
	$
	$
Total property, plant, and equipment
Intangible assets:
Total assets			$
Liabilities
Current liabilities:
		$
Total current liabilities			$
Long-term debt:
Total liabilities			$
Stockholders' Equity
Contributed capital:
		$
Total contributed capital		$
Total stockholders' equity
Total liabilities and stockholders' equity			$

2. Compute Ruth's current ratio. Round your answer to two decimal places.
to 1

3. On the basis of your answer to (2), does Ruth appear to be liquid?

Answer 1