The accounts of Meadowbrook Service, Inc., at January 31, 2018, are listed in alphabetical order….

The accounts of Meadowbrook Service, Inc., at January 31, 2018, are listed in alphabetical order.

The accounts of Meadowbrook Service, Inc., at January 31, 2018, are listed in alphabetical order....

Requirements

1. Use the Meadowbrook Services data to prepare the company’s classified balance sheet at January 31, 2018.

2. Calculate Meadowbrook’s net working capital, current ratio, and debt ratio at January 31, 2018, rounding to two decimal places. At January 31, 2017, the net working capital was $16,700, the current ratio was 1.75, and the debt ratio was 0.25. Did Meadowbrook’s ability to pay both current and total liabilities improve or deteriorate during the fiscal year? Evaluate Meadowbrook’s debt position as strong or weak and give your reason.

 

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