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$ 2,850 6,700 (2,000) 7,600 2,800 17,950 4,600 3,850 25,000 (5,800) Assets Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory Prepaid

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$ 2,850 6,700 (2,000) 7,600 2,800 17,950 4,600 3,850 25,000 (5,800) 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 Patent 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 $ 6,800 7,200 1,700 6,200 21,900 1,000 The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company's controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet Print Additional information ($ in 000s): 1. Certain records that included the account balances for the patent and shareholders' equity items were lost. However, the controller told you that a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 12. That is, total liabilities are 120% of total shareholders' equity, Retained earnings at the beginning of the year was $7.200. Net income for 2018 was $2,350 and $550 in cash dividends were declared and paid to shareholders 2. Management intends to sell the investments in the next six months 3. Interest on both the note and the bonds is payable annually 4. The note payable is due in annual installments of $1,800 each 5. Deferred revenue will be recognized as revenue equally over the next two fiscal years 6. The common stock represents 500,000 shares of no par stock authorized, 410,000 shares issued and outstanding Required: Prepare a complete, corrected, classified balance sheet (Amounts to be deducted should be indicated by a minus sign.)

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