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As controller for Henderson, you are attempting to reconstruct and revise the following balance sheet prepared by a staff accountant. HENDERSON MANUFACTURING COMPANY Balance Sheet

As controller for Henderson, you are attempting to reconstruct and revise the following balance sheet prepared by a staff accountant.

HENDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2016 ($ in 000s)
Assets
Current assets:
Cash $ 1,200
Accounts receivable 3,800
Allowance for uncollectible accounts (300 )
Finished goods inventory 5,200
Prepaid expenses 2,500
Total current assets 12,400
Noncurrent assets:
Investments 2,100
Raw materials and work in process inventory 3,000
Equipment 15,000
Accumulated depreciationequipment (8,100 )
Franchise ?
Total assets $ ?
Liabilities and Shareholders Equity
Current liabilities:
Accounts payable $ 6,300
Note payable 9,000
Interest payablenote 300
Deferred revenue 2,100
Total current liabilities 17,700
Long-term liabilities:
Bonds payable 8,000
Interest payablebonds 300
Shareholders equity:
Common stock $ ?
Retained earnings ? ?
Total liabilities and shareholders equity ?

Additional information ($ in 000s):
1.

Certain records that included the account balances for the franchise and shareholders equity items were lost. However, a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.6. That is, total liabilities are 160% of total shareholders equity. Retained earnings at the beginning of the year was $4,400. Net income for 2016 was $2,600, and $900 in cash dividends were declared and paid to shareholders.

2.

The investments represent treasury bills purchased in December 2016 that mature in January 2017. These are considered cash equivalents.

3. Interest on both the note and the bonds is payable annually.
4. The note payable is due in annual installments of $900 each.
5. Deferred revenue will be earned equally over the next 18 months.
6.

The common stock represents 500,000 shares of no par stock authorized, 300,000 shares issued and outstanding.

Required:

Prepare a complete, corrected, classified balance sheet.

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