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 is in 6005) Assets Current assets: Cash $1,600 Accounts receivable 4,200 Allowance for uncolectible accounts (700) Finished goods inventory 6.000 Prepaid expenses 2.900 Total current assets 14,000 Long-tern assets: Investments 2.500 Raw materials and work in process inventory 3,400 Equipment 17,000 Accumulated depreciation equipment 18,500) Franchise Total assets S Liabilities and Shareholders' Equity Current liabilities: Accounts payable 5.6,700 Notes payable 13,000 Interest payable-note 320 Deferred revenue 3,000 Total current liabilities 23,00 Long-term liabilities: Bonds payable 12,000 Interest payable-bonds 700 Shareholders equityt Common stock Retained earnings Total abilities and shareholders' equity 7 7 Additional information (5 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 17 That is, total Tiabilities are 170% of total shareholders' equity Retained earnings at the beginning of the year was $4800. Net income for 2021 was $3.000, and $1.300 in cash dividends were declared and paid to shareholders 2. The investments represent treasury bills purchased in December 2021 that mature in January 2022. These are considered cash Additional Information (Sin 000): 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 17 That is, total Kabilities are 170% of total shareholders' equity. Retained earnings at the beginning of the year was $4,800. Net Income for 2021 2. The investments represent treasury bills purchased in December 2021 that mature in January 2022. These are considered cash equivalents 3. Interest on both the notes and the bonds is payable annually 4. The notes payable account contains one note that is due in annual installments of $1300 for each payment due. 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, of which 300.000 shares are 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) Henderson Manufacturing Company Balance Sheet At December 31, 2021 (5 in 000) Assets Current assets Inventory Total current assets Property, plant and equipment Henderson Manufacturing Company Balance Sheet At December 31, 2021 (s in 000s) Assets Current assets: Inventory: Total current assets Property, plant, and equipment: Net property, plant, and equipment Intangibles: Total assets Liabilities and Shareholders' Equity Current liabilities: Total current liabilities Long-term liabilities: Net property, plant, and equipment Intangibles: Total assets Liabilities and Shareholders' Equity Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Shareholders' equity: Total shareholders' equity Total liabilities and shareholders equity
