Question

The following items were taken from the financial statements Wyatt Company. (All dollars are in thousands.) Long-term debt $ 1,950 Accumulated depreciation $ 5,600 Prepaid insurance 900 Accounts payable 2,444 Equipment 14,300 Notes payable after 2016 1,024 Long-term investments 464 Common stock 10,000 Short-term investments 3,490 Retained earnings 5,800 Notes payable in 2016 474 Accounts receivable 1,734 Cash 4,648 Inventory 1,456 Patents 600 2015 net income was 1,000 and dividends paid were $700. Instructions Prepare a classified balance sheet in good form as of December 31, 2015. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

Answer 1

Statement of retained earnings

Retained earnings, beginning	5,800
Net income	1,000
Dividend paid	- 700
Retained earnings, ending	6,100

Balance sheet

Assets	Amount	Liabilities and stockholders' equity	Amount
Current assets		Current liabilities
Cash	4,648	Accounts payable	2,444
Short term investments	3,490	Notes payable	474
Accounts receivable	1,734	Total current liabilities	2,918
Inventory	1,456	Long term liabilities
Prepaid insurance	900	Long term debt	1,950
Current assets	12,228	Notes payable	1,024
Long term investments	464	Total long term liabilities	2,974
Property, plant and equipment		Stockholders' equity
Equipment	14,300	Common stock	10,000
Accumulated depreciation	(5,600)	Retained earnings	6,100
Net property, plant and equipment	8,700	Total stockholders' equity	16,100
Intangible assets
Patents	600
Total assets	21,992	Total liabilities and stockholders' equity	21,992

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