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3.500 Question 2 The following incomplete balance sheet for the Fernandez Corp. was prepared by the assistant to the company's controller, who quit before finishing

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3.500 Question 2 The following incomplete balance sheet for the Fernandez Corp. was prepared by the assistant to the company's controller, who quit before finishing the job. You have been asked to finish the job and make sure it is correct. Fernander Corp Balance Sheet At December 31, 2020 (s in thousands) Assets Current Assets Cash $ 1.250 Accounts receivable Allowance for doubtful accounts (400) Finished goods inventory 6,000 Prepaid expenses 1.200 Total current assets 11,550 Long-term assets Investments 3,000 Raw materials and work-in-process inventory 2,250 Equipment 15,000 Accumulated depreciation (4,200) Patent (net) Total Assets Liabilities & Shareholders' Equity Current liabilities: Accounts payable $ 5,200 Notes payable 4,000 Interest payable (on notes) Customer deposits on orders placed 3.000 Total current liabilities 12,300 Long-term liabilities Bonds payable 5.500 Interest payable (on bonds) 200 Shareholders' Equity Common stock Retained earnings Total liabilities & shareholders' equity 100 Additional information (also in 000): 1. The assistant managed to misplace some records for the account balances for the patent and the shareholders' equity accounts. However, the controller tells you that a draft of the balance sheet showed a debt to equity ratio of 124. Retained earnings at the beginning of the year was $4,000. Net income for 2020 was $1,560 and dividends of $560 had been declared and paid. 2. The plan is for the company to sell the investments within the next 6 months 3. Interest on both the notes and the bonds are to be paid annually. 4. The notes payable are due in annual installments of $1,000 each. 5. The customer deposits will be earned equally over the next two years. 6. The common stock represents 400,000 shares of no par stock authorized, with 250,000 shares issued and outstanding . You are to prepare a corrected classified balance sheet. Include the proper headings for each classification as well as titles for any necessary subtotals. Attach a sheet with your (or the group's final) labelled work to earn full credit

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