the following balance sheet items listed in alphabetical order are available from th 497222

The following balance sheet items, listed in Alphabetical order, are available from the records of Ruth Corporation at December 31,2010:

Accounts payable $18,255

Accounts receivable 23,450

Accumulated depreciation-automobiles 22,500

Accumulated depreciation- buildings 40,000

Automobiles 112,500

Bonds payable, due December 31, 2014 160,000

Buildings 200,000

Capital stock,$10 par value 150,000

Cash 13,230

Income taxes payable $6,200

Interest payable 1,500

Inventory 45,730

Land 250,000

Long-term investments 85,000

Notes payable, due June 30, 2011 10,000

Paid-in capital in excess of par value 50,000

Patents 40,000

Prepaid rent 1,500

Retained earnings 311,095

Salaries and wages payable 4,200

Required:

1. Prepare in good form a classified balance sheet as of December 31, 2010.

2. Compute Ruth s current ratio.

3. On the basis of your answer to (2), does Ruth appear to be liquid? What other information do you need to fully answer that question?