Question

complete a classified balance sheet

$ 1,450 3,950 (800) 5,300 3,600 13,500 3,200 4,100 20,500 (9,200) At December 31, 2018 ($ in 2005) Assets Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment Accumulated depreciation-equipment Franchise Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Note payable Interest payable-note Deferred revenue Total current liabilities Long-term liabilities: Bonds payable Interest payable-bonds Shareholders' equity: Common stock Retained earnings Total liabilities and shareholders' equity $ 7,400 10,000 200 3,600 21,200 9,000 600

Answer 1

Classified Balance Sheet, at Dec. 31, 2018

	$ (in 000s )
Assets
Current Assets:
Cash	1,450
Investment in Treasury Bills	3,200
Account Receivable	3,950
Less: Allowance for un-collectible accounts	(800)
Raw Material & Work in Process Inventory	4,100
Finished Goods Inventory	5,300
Prepaid Expense	3,600
Total Current assets	20,800
Long Term Assets:
Equipment	20,500
Accumulated depreciation-equipment	(9,200)
Franchise (3)	3,557
Total Assets	35,657
Liabilities and Shareholders' Equity
Current Liabilities:
Account Payable	7,400
Interest Payable on Note	200
Interest Payable on Bonds	600
Deferred Revenue (Expiring within one year)	2,400
Bonds Payable (Maturing within one year)	1,000
Total Current Liabilities	11,600
Deferred Revenue (Expiring after one year)	1,200
Bonds Payable- Maturing after one year	8,000
Total Liabilities:	20,800
Shareholders' Equity:
Common Stock (2)	10,757
Retained Earning (1)	4,100
Total Liabilities and Shareholders' Equity	$ 35,657

Notes:

(1) Retained Earning Statement

Beginning Balance	3,400
Net Income	2,500
Cash Dividend	(1,800)
Ending Balance	4,100

Debt Equity Ratio = Total Debt/ Shareholders' equity(SHE)

1.4 = $20,800/Shareholders' equity

Shareholders' equity = $14,857

(2) Common Stock = 14,857 - $4,100 = $10,757

(3) Franchise = Total Liabilities & shareholders' equity - Current Assets - Net Equipment

= 35,657 - 20,800 - (20,500 - 9,200) =35,657 -20,800 -11,300 = $3,557