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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, 2018 ($ in 000s)
Assets
Current assets:
Cash $ 1,950
Accounts receivable 4,450
Allowance for uncollectible accounts (700 )
Finished goods inventory 6,300
Prepaid expenses 4,100
Total current assets 16,100
Long-term assets:
Investments 3,700
Raw materials and work in process inventory 4,600
Equipment 23,000
Accumulated depreciationequipment (9,700 )
Franchise ?
Total assets $ ?
Liabilities and Shareholders Equity
Current liabilities:
Accounts payable $ 7,900
Note payable 15,000
Interest payablenote 400
Deferred revenue 2,700
Total current liabilities 26,000
Long-term liabilities:
Bonds payable 8,000
Interest payablebonds 200
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 1.5. That is, total liabilities are 150% of total shareholders equity. Retained earnings at the beginning of the year was $3,900. Net income for 2018 was $3,000, and $1,000 in cash dividends were declared and paid to shareholders.
  2. The investments represent treasury bills purchased in December 2018 that mature in January 2019. 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 $1,500 each.
  5. Deferred revenue will be recognized 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. (Do not round your intermediate calculations. Enter your answers in the order of their liquidity. Amounts to be deducted should be indicated by a minus sign. Enter your answers in thousands of dollars.)

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HENDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2018 ($ in 000s) 01 lelo

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