P7-4A The adjusted trial balance of Quad Cities Tours Inc. as of

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P7-4A The adjusted trial balance of Quad Cities Tours Inc. as of October 31, 2008 (its yearend) contains the following information.

Accounts payable $170,000
Accounts receivable 15,000
Accumulated depreciation—Buildings 144,000
Accumulated depreciation—Equipment 715,000
Bonds payable 600,000
Buildings—Offices and cabins 660,000
Cash 36,000
Common stock 300,000
Equipment 840,000
Income taxes payable 56,250
Interest payable 30,000
Inventories 485,000
Investment in Iowa Trading Post, Inc. (trading—short-term) 140,000
Land 653,000
Mortgage payable (on fishing cabins—long-term) 247,750
Notes payable (short-term) 164,000
Prepaid advertising 17,000
Prepaid insurance 9,000
Retained earnings (October 31, 2008) 440,000
Supplies 12,000

Instructions
(a) Prepare in good form a classified balance sheet for Quad Cities Tours Inc.

(b) Calculate the following balance sheet relationships: current ratio, debt to total assets ratio,and working capital.

(c) Assume that Quad Cities has come to you, as the senior loan officer of Big Woods Credit Union, seeking a $500,000 loan to help defray the costs of replacing much of its rental camping gear and canoes.Would you be willing to approve the loan? Is there any additional information you would like to have before making your decision?