Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firms worksheet for the year ended December 31, 2019. ACCOUNTS Debit Credit Cash $ 23,600 Petty Cash Fund 600 Notes Receivable, due 2020 11,300 Accounts Receivable 91,000 Allowance for Doubtful Accounts $ 5,500 Merchandise Inventory 229,000 Warehouse Supplies 2,810 Office Supplies 1,370 Prepaid Insurance 8,700 Land 41,000 Building 173,000 Accumulated DepreciationBuilding 51,000 Warehouse Equipment 34,500 Accumulated DepreciationWarehouse Equipment 15,900 Delivery Equipment 48,500 Accumulated DepreciationDelivery Equipment 18,600 Office Equipment 22,500 Accumulated DepreciationOffice Equipment 10,500 Notes Payable, due 2020 19,700 Accounts Payable 38,500 Interest Payable 530 Mortgage Payable 58,500 Loans Payable, Long-term 14,500 Charles Ronie, Capital (Jan. 1) 430,560 Charles Ronie, Drawing 126,500 Income Summary 239,000 229,000 Sales 1,675,000 Sales Returns and Allowances 17,700 Interest Income 1,530 Purchases 762,000 Freight In 13,300 Purchases Returns and Allowances 7,940 Purchases Discounts 10,660 Warehouse Wages Expense 194,600 Warehouse Supplies Expense 6,600 Depreciation ExpenseWarehouse Equipment 5,300 Salaries ExpenseSales 264,200 Travel and Entertainment Expense 21,000 Delivery Wages Expense 59,830 Depreciation ExpenseDelivery Equipment 9,300 Salaries ExpenseOffice 70,100 Office Supplies Expense 3,500 Insurance Expense 5,700 Utilities Expense 8,790 Telephone Expense 6,020 Payroll Taxes Expense 56,500 Property Taxes Expense 5,100 Uncollectible Accounts Expense 5,300 Depreciation ExpenseBuilding 8,500 Depreciation ExpenseOffice Equipment 3,500 Interest Expense 7,700 Totals $ 2,587,920 $ 2,587,920 Required: Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses. Prepare a statement of owners equity for the year ended December 31, 2019. No additional investments were made during the period. Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year. Analyze: What is the current ratio for this business? SUPERIOR HARDWOOD COMPANY Income Statement Operating revenue Net sales Cost of goods sold Merchandise inventory, January 1, 2019 Delivered cost of purchases Net delivered cost of purchases Total merchandise available for sale Gross profit on sales Operating expenses Warehouse expenses Total warehouse expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative exp. Total operating expenses Income from operations Other income Other expenses Net nonoperating expenses Net income for year Required 1 Required 2