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Selected accounts of Backyard Irrigation Systems, at December 31, 2019, follow. $ 700 Accounts payable Accounts receivable Accumulated depreciation-building Accumulated depreciation- $ 33,200 Insurance expense 2,800 42,500 Note payable, long-term Other assets 2,100 48,900 Building 54,500 Prepaid insurance 5,100 6,600 equipment Salary expense 16,400 Cash 11,000 Salary payable 4,000 Interest payable 500 Service revenue A Nyquist, Capital, Dec 31, 2017 43,400 70,400 3,400 Equipment Supplies 22,500 Unearned service revenue 1,700 Problem 1 Requirements 1. Prepare the company's classified balance sheet in report form at December 31, 2019. Show totals for total assets, total liabilities, and owner's equity. 2. Computer the company's current ratio and debt ratio at December 31, 2019. At December 31, 2018, the current ration was 1.82 and the debt ratio was 0.41. Did its ability to pay debts improve, deteriorate, or remain the same during 2019? Requirement 1. Complete the balance sheet. Begin by filling in the heading for the balance sheet. Next, complete the statement by selecting the account names, subtotal and total headings in the first column. Enter the balances for each account and calculate all subtotals and totals. Backyard Irrigation Systems ASSETS Current assets: Cash Acc name Student no. Student name Aug 30, 2008 Total current assets Plant assets: Equipment Less: Accumulated depreciation - equipment Total current assets Plant assets: Equipment Less: Accumulated depreciation - equipment Total assets LIABILITIES Current liabilities: Accounts payable Total current liabilities Total liabilities OWNER'S EQUITY A. Nyquist, Capital Total liabilities and owner's equity Requirement 2: Current ratio (round to two decimal places) During 2019, Backyard Irrigation Systems' ability to pay current liabilities Debt ratio (round to two decimal places) During 2019, Backyard Irrigation Systems' ability to pay debts

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