(TCO D) The following items are taken from the financial statements of SRW Company for 2012:

(TCO D) The following items are taken from the financial statements of SRW Company for 2012:

Cash

$375,000

Accounts Receivable

125,000

Prepaid Insurance

100,000

Accounts Payable

88,000

Unearned Service Revenue

15,000

Equipment, net of accumulated depreciation

177,000

Common Stock

125,000

Retained Earnings 12/31/2011

106,000

Long-term debt

336,500

Service revenue

225,000

Cost of Goods Sold

62,500

Rent expense

30,000

Supplies expense

8,000

Insurance expense

18,000

Instructions

(a) Please create a classified Balance Sheet in good form for the year ended 2012. (25 points)

(b) Please calculate the current ratio. (5 points)