The unadjusted trial balance and income statement amounts from the December 31 adjusted trial…
The unadjusted trial balance and income statement amounts from the December 31 adjusted trial balance of Crawford Production Company follow.
1. Use the data in the partial worksheet to prepare Crawford Production Company’s classified balance sheet at December 31 of the current year. Use the report format. First you must calculate the adjusted balance for several of the balance-sheet accounts.
2. Calculate Crawford Production Company’s net working capital, current ratio, and debt ratio at December 31. A year ago, net working capital was $5,000, the current ratio was 1.54, and the debt ratio was 0.59. Indicate whether the company’s ability to pay its debts— both current and total—improved or deteriorated during the current year.