The calendar year-end adjusted trial balance for Acosta Co. follows: Required:
(a) Prepare a classified year-end balance sheet. (Note: A $7,000 installment on the long-term note payable is due within one year.)
(b) Calculate the current ratio. Comment on the ability of Acosta Co. to meets its short-term debts.

Question

The calendar year-end adjusted trial balance for Acosta Co. follows:  Required:
(a) Prepare a classified year-end balance sheet. (Note: A $7,000 installment on the long-term note payable is due within one year.)
(b) Calculate the current ratio. Comment on the ability of Acosta Co. to meets its short-term debts.

The Calendar Year-End Adjusted Trial Balance for Acosta Co