Question
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, 2021
($ 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 Long-term 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 Notes 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):
- 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 2021 was $2,600, and $900 in cash dividends were declared and paid to shareholders.
- The investments represent treasury bills purchased in December 2021 that mature in January 2022. These are considered cash equivalents.
- Interest on both the notes and the bonds is payable annually.
- The notes payable account contains one note that is due in annual installments of $900 for each payment due.
- Deferred revenue will be recognized equally over the next 18 months.
- The common stock represents 500,000 shares of no par stock authorized, of which 300,000 shares are issued and outstanding.
Required:
Please help me 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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