Lee Delivery Company was organized at the beginning of Year 1. The following transactions occurred during the year: Received $46,500 cash from the organizers in exchange for shares in the new company. Purchased land for $17,300 and signed a one-year note (at a 6 percent annual interest rate). Bought two used delivery trucks for operating purposes at the start of the year at a cost of $12,600 each: paid $6,300 cash and signed a promissory note for the balance, payable over the next three years (at an annual interest rate of 7 percent). Sold one-fourth of the land for $4,325 to Birkins Moving, which promised to pay in six months. Paid $3,300 cash to a truck repair shop for a new motor for one of the trucks. (Hint: Increase the account you used to record the purchase of the trucks since the usefulness of the truck has been improved.) Traded the other truck and $7,300 cash for a new one. The old truck's fair value is $12,600. Shareholder Jonah Lee paid $28,800 cash for a vacant lot (land) for his personal use. Collected the amount of the note due from Birkins Moving in (d). Paid one-third of the principal of the note due for the delivery trucks in (c). Required: 1. Post the above transactions into the appropriate T-accounts, beginning balances is $0 for all accounts. 2-a. Prepare a classified statement of financial position for Lee Delivery Company at the end of Year 1. 2-b. Compute the current ratio at that date. (Round the final answer to 2 decimal places.) 3. At the end of the next two years, Lee Delivery Company reported the following amounts on its statements of financial position: December 31, Year 2 December 31, Year 3 Current assets $ 58,500 $ 53,500 Non-current assets 44,500 79,500 Total assets 103,000 133,000 Short-term notes payable 29,500 46,500 Long-term notes payable 23,500 26,500 Total liabilities 53,000 73,000 Shareholders' equity 50,000 60,000 3-a. Compute the company's current ratio for Years 1, 2, and 3. (Round the final answers to 2 decimal places.) 4. At the beginning of Year 4, Lee Delivery Company applied to your bank for a $50,000 short-term loan to expand the business. The vice-president of the bank asked you to review the information and make a recommendation on lending the funds based solely on the results of the current ratio. What recommendation would you make to the bank's vice- president about lending the money to Lee Delivery Company? multiple choice Should extend loan Should not extend loan