Using the information in Exercise 12-16, prepare a classified balance sheet at December 31, 2023, and then answer each of the following questions (assume that the preferred shares are non-cumulative; round percentages to the nearest whole percent):

1. What percentage of the total assets is owned by the shareholders?2. What percentage of Spicer Inc. is equity financed?3. What percentage of Spicer Inc. is financed by debt?4. What percentage of the total assets is owned by the common shareholders?5. What percentage of the assets is financed by the preferred shareholders?6. What are the advantages to the common shareholders of issuing preferred shares over additional common shares?

Data From Exercise 12-16

Spicer Inc. showed the following alphabetized list of adjusted account balances at December 31, 2023:

RequiredAssuming normal balances, prepare the closing entries at December 31, 2023, the company’s year-end. Also, calculate the post-closing balance in Retained Earnings at December 31, 2023.

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Accounts Payable Accounts Receivable Accum. Deprec., Equip Accum. Deprec., Warehouse Cash Cash Dividends Common Shares Equipment $ 25,560 Income Tax Expense $ 40,400 115,600 39,000 Land 10,540 Notes Payable, due in 2026 33,400 21,080 Operating Expenses 109,000 8,200 Preferred Shares 39,000 27,520 269,500 126,800 19,400 Retained Earnings 110,000 Revenue 78,200 Warehouse