Question

The following items were taken from the financial statements of Ayayai Company. (All amounts are in thousands.) Long-term debt Prepaid insurance Equipment Stock investments (long-term) Debt investments (short-term) Notes payable (due in 2023) Cash $900 700 11,000 200 3,200 400 2,000 Accumulated depreciation-equipment Accounts payable Notes payable (due after 2023) Common stock Retained earnings Accounts receivable Inventory $5,000 1,000 300 9,900 2,000 1,200 1,200 Prepare a classified balance sheet in good form as of December 31, 2022. (Enter amounts in thousands. List Current Assets in order of liquidity.)

Please fill out the table.

Answer 1

Ayayai Company
Balance Sheet
December 31, 2022.
Assets
Current Assets:
Cash	$2,000
Accounts Receivable	$1,200
Inventory	$1,200
Prepaid Insurance	$700
Debt investments (short-term)	$3,200
Total Current Assets		$8,300
Stock investments (long-term)		$200
Property, plant and equipment:
Equipment	$11,000
Less: Accumulated depreciation - equipment	($5,000)	$6,000
Total Assets		$14,500
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts Payable	$1,000
Notes payable (due in 2023)	$400
Total Current Liabilities		$1,400
Non-Current Liabilities:
Long-term debt	$900
Notes payable (due after 2023)	$300
Total non-current liabilities		$1,200
Stockholders' Equity:
Common stock	$9,900
Retained earnings	$2,000
Total stockholders' equity		$11,900
Total Liabilities and Stockholders' Equity		$14,500