Question 1

Below is the trial balance for Emerald Gold for December 31, 2019.

Cash						$133,250	0
Sales revenue						0	$5,206,500
FV-NI investments (Fair value 102,500)						99,450	0
Cost of goods sold						3,120,000	0
Bond investment amortized cost						194,350	0
FV-OCI investments (Fair value 190,000)						180,050	0
Notes payable 9 (due in 11 months)						0	63,700
Accounts payable						0	354,250
Selling expenses						1,209,000	0
Investment income or loss						0	8,450
Land						169,000	0
Building						676,000	0
Wages payable						0	88,400
Accrued liabilities						0	62,400
Accounts receivable						334,750	0
Accumulated depreciation - building						0	98,800
Allowance for doubtful accounts						0	16,250
Administrative expenses						585,000	0
Interest expense						137,150	0
Inventory						446,550	0
Loss on sale of equipment						39,000
Correction of depreciation error prior year						26,000	0
Notes payable 9 (due in 4 years)						0	585,000
Equipment						390,000	0
Bonds payable( due in 10 years)						0	650,000
Accumulated depreciation equipment						0	39,000
Goodwill						104,000	0
Patents - net						126,750	0
Common share						0	525,850
Retained Earnings						0	219,700
Accumulated other comprehensive income						0	52,000
						$7,970,300	$7,970,300
Other information:
There are unlimited shares authorized and 100,000 issued and outstanding. The company lawyers have just informed the company that a pending lawsuit is likely to succeed in the amount of $250,000.

Required:

Prepare a classified balance sheet in good form

Calculate the current ratio and the debt to total asset ratio. Include a comment on the result.