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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

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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 At December 31, 2016 ($ in 000s) Assets Current assets: Cash $ 1,500 Accounts receivable 4,100 Allowance for uncollectible (600) accounts Finished goods inventory 5,800 Prepaid expenses 2,800 13,600 Total current assets Noncurrent assets: Investments Raw materials and work in process inventory Equipment Accumulated depreciation- equipment Franchise 2,400 3,300 16,500 (8,400) ? Total assets $ ? Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 6,600 Note payable 12,000 Interest payable-note 400 Deferred revenue 3,000 Total current liabilities Long-term liabilities: 22,000 Interest payable-note Deferred revenue 12VUU 400 3,000 22,000 Total current liabilities Long-term liabilities: Bonds payable Interest payable-bonds Shareholders' equity: Common stock Retained earnings 11,000 600 $? ? ? Total liabilities and shareholders' equity ? Additional information ($ 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 $4,700. Net income for 2016 was $2,900, and $1,200 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 $1,200 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. (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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