Response to the following problem:
The assets, liabilities, and shareholders' equity accounts of Lawson Corporation at December 31, 2015 are as follows:
Account Balance
Accounts payable $10,000
Accounts receivable 15,200
Accumulated depreciation - building 1,000
Accumulated depreciation - equipment 500
Building 14,000
Cash 5,600
Equipment 4,000
Land 5,000
Merchandize inventory 5,600
Mortgage payable, due in 5 years 8,000
Notes payable, due within 90 days 7,500
Notes receivable, due in 120 days 3,000
Prepaid insurance 400
Retained earnings 16,000
Share capital 10,000
Unused supplies 200
Required:
1. Prepare a classified balance sheet.
2. a. What is the proportion of shareholder claims to the total assets of the corporation?
b. What is the proportion of creditor's claims to the total assets of the corporation?
3. What does this indicate to you?