The following information is provided for Tom’s Track Shoe Store at the end of 2000:

Accounts receivable $ 6,500 Accounts payable 106,500 Bonds payable 180,000 Invested capital 300,000 Cash 14,500 Equipment 88,000 Income taxes payable 11,500 Inventory 497,500 Other long-term assets 110,000 Notes payable 50,000 Prepaid rent 54,000 Retained earnings, 12-31-99 94,500 Retained earnings, 12-31-00 ?

Required

a. Prepare a balance sheet, and make it balance. Discuss the steps necessary to balance it along with any necessary assumptions.

b. What conclusions can be drawn regarding this business? Why?