Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below...

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Superior Hardwood Company distributes hardwood products to smallfurniture manufacturers. The adjusted trial balance data givenbelow is from the firm’s worksheet for the year ended December 31,2019. ACCOUNTS Debit Credit Cash $ 22,800 Petty Cash Fund 500 NotesReceivable, due 2020 10,500 Accounts Receivable 84,000 Allowancefor Doubtful Accounts $ 4,700 Merchandise Inventory 221,000Warehouse Supplies 2,730 Office Supplies 1,290 Prepaid Insurance6,300 Land 33,000 Building 165,000 AccumulatedDepreciation—Building 46,200 Warehouse Equipment 30,500 AccumulatedDepreciation—Warehouse Equipment 13,500 Delivery Equipment 44,500Accumulated Depreciation—Delivery Equipment 17,000 Office Equipment18,500 Accumulated Depreciation—Office Equipment 8,100 NotesPayable, due 2020 18,900 Accounts Payable 37,700 Interest Payable450 Mortgage Payable 54,500 Loans Payable, Long-term 10,500 CharlesRonie, Capital (Jan. 1) 348,260 Charles Ronie, Drawing 125,700Income Summary 231,000 221,000 Sales 1,691,000 Sales Returns andAllowances 16,900 Interest Income 1,450 Purchases 754,000 FreightIn 12,500 Purchases Returns and Allowances 7,140 PurchasesDiscounts 9,860 Warehouse Wages Expense 186,600 Warehouse SuppliesExpense 5,800 Depreciation Expense—Warehouse Equipment 4,500Salaries Expense—Sales 256,200 Travel and Entertainment Expense20,200 Delivery Wages Expense 59,030 Depreciation Expense—DeliveryEquipment 8,500 Salaries Expense—Office 69,300 Office SuppliesExpense 2,700 Insurance Expense 4,900 Utilities Expense 7,990Telephone Expense 5,220 Payroll Taxes Expense 52,500 Property TaxesExpense 4,300 Uncollectible Accounts Expense 4,500 DepreciationExpense—Building 7,700 Depreciation Expense—Office Equipment 2,700Interest Expense 6,900 Totals $ 2,490,260 $ 2,490,260 Required:Prepare a classified income statement for the year ended December31, 2019. The expense accounts represent warehouse expenses,selling expenses, and general and administrative expenses. Preparea statement of owner’s equity for the year ended December 31, 2019.No additional investments were made during the period. Prepare aclassified balance sheet as of December 31, 2019. The mortgagepayable extends for more than a year. Analyze: What is the currentratio for this business?

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Superior Hardwood Company distributes hardwood products to smallfurniture manufacturers. The adjusted trial balance data givenbelow is from the firm’s worksheet for the year ended December 31,2019. ACCOUNTS Debit Credit Cash $ 22,800 Petty Cash Fund 500 NotesReceivable, due 2020 10,500 Accounts Receivable 84,000 Allowancefor Doubtful Accounts $ 4,700 Merchandise Inventory 221,000Warehouse Supplies 2,730 Office Supplies 1,290 Prepaid Insurance6,300 Land 33,000 Building 165,000 AccumulatedDepreciation—Building 46,200 Warehouse Equipment 30,500 AccumulatedDepreciation—Warehouse Equipment 13,500 Delivery Equipment 44,500Accumulated Depreciation—Delivery Equipment 17,000 Office Equipment18,500 Accumulated Depreciation—Office Equipment 8,100 NotesPayable, due 2020 18,900 Accounts Payable 37,700 Interest Payable450 Mortgage Payable 54,500 Loans Payable, Long-term 10,500 CharlesRonie, Capital (Jan. 1) 348,260 Charles Ronie, Drawing 125,700Income Summary 231,000 221,000 Sales 1,691,000 Sales Returns andAllowances 16,900 Interest Income 1,450 Purchases 754,000 FreightIn 12,500 Purchases Returns and Allowances 7,140 PurchasesDiscounts 9,860 Warehouse Wages Expense 186,600 Warehouse SuppliesExpense 5,800 Depreciation Expense—Warehouse Equipment 4,500Salaries Expense—Sales 256,200 Travel and Entertainment Expense20,200 Delivery Wages Expense 59,030 Depreciation Expense—DeliveryEquipment 8,500 Salaries Expense—Office 69,300 Office SuppliesExpense 2,700 Insurance Expense 4,900 Utilities Expense 7,990Telephone Expense 5,220 Payroll Taxes Expense 52,500 Property TaxesExpense 4,300 Uncollectible Accounts Expense 4,500 DepreciationExpense—Building 7,700 Depreciation Expense—Office Equipment 2,700Interest Expense 6,900 Totals $ 2,490,260 $ 2,490,260 Required:Prepare a classified income statement for the year ended December31, 2019. The expense accounts represent warehouse expenses,selling expenses, and general and administrative expenses. Preparea statement of owner’s equity for the year ended December 31, 2019.No additional investments were made during the period. Prepare aclassified balance sheet as of December 31, 2019. The mortgagepayable extends for more than a year. Analyze: What is the currentratio for this business?