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    Dante's Classified Balance sheet & Ratio's

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    1. From the information provided, prepare a classified balance sheet for Dante Nuts And Bolts Company.

    2. Compute Dante's Nuts and Bolts current ratio and debt to equity ratio.

    3. As a user of the classified balance sheet, why would you want to know the current ratio or the debt to equity ratio?

    The following information is from the September, post-closing trial balance of Dante Nuts and Bolts Company.
    Account Name Debit Credit
    Cash $ 31,000
    Short-Term Investments 33,000
    Notes Receivable 10,000
    Accounts Receivable 276,000
    Merchandise Inventory 145,000
    Prepaid Rent 1,600
    Prepaid Insurance 4,800
    Sales Supplies 1,280
    Office Supplies 440
    Deposit for Future Advertising 3,680
    Building, Not in Use 49,600
    Land 22,400
    Delivery Equipment 41,200
    Accumulated Depreciation-Delivery Equipment $ 28,400
    Trademark 4,000
    Accounts Payable 114,600
    Salaries Payable 5,200
    Interest Payable 840
    Long-Term Notes Payable 80,000
    Mr. Dante, Capital 394,960

    1. From the information provided, prepare a classified balance sheet for Dante Nuts And Bolts Company.

    2. Compute Dante's Nuts and Bolts current ratio and debt to equity ratio.

    3. As a user of the classified balance sheet, why would you want to know the current ratio or the debt to equity ratio?

    Classified Balance Sheet

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    https://brainmass.com/business/financial-statements/dantes-classified-balance-sheet-ratios-288256

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    The solution prepares Classified Balance sheet for Dante Nuts & Bold Co. and computes current ratio and debt to equity ratio.

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