Additional Information ($ in thousands): 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 1.2. That is, total liabilities are 120% of total shareholders equity. Retained earnings at the beginning of the year was $4,000. Net income for 2018 was $1,560 and $560 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 $1,000 each. 5. Deferred revenue will be recognized as revenue equally over the next two fiscal years. 6. The common stock represents 400,000 shares of no par stock authorized, 250,000 shares issued and outstanding.

Required: Prepare a complete, corrected, classified balance sheet. (Please provide answer with explanation)

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. Sanderson Manufacturing Company Balance Sheet At December 31, 2018 $ in thousands) Assets Current assets: Cash $ 1,250 Accounts receivable 3.500 Allowance for uncollectible 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-equipment (4,200) Patent Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 5.200 Note payable 4.000 Interest payable-note 100 Deferred revenue 3,000 Total current liabilities 12,300 Long-term liabilities: Bonds payable 5,500 Interest payable-bonds 200 Shareholders' equity: Common stock $ ? Retained earnings Total liabilities and shareholders' equity