C 2 10 points eBook Print References The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company's controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet. SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2021 ($ in 600) Assets Current assets: Cash $ 2,350 Accounts receivable 5,700 Allowance for uncollectible accounts (1.500) Finished goods inventory 7,100 Prepaid expenses Total current assets 15,950 Long-term assets: Investments 4,100 Raw materials and work in process inventory 3, 35e Equipment 20,000 Accumulated depreciation (5,300) Patent (net) Total assets $ 2 Liabilities and Shareholders Equity Current liabilities: Accounts payable $ 6,300 Notes payable 6,200 Interest payable (on notes) 1,200 Deferred revenue 5,200 Total current liabilities 18,900 Long-term liabilities: Bonds payable 6,600 Interest payable (on bonds) 500 Shareholders' equity: Common stock Retained earnings Total liabilities and shareholders' equity nce Sheet-problems Saved Help Sa 2 Retained earnings Total liabilities and shareholders' equity ? Additional information ($ in 000s): 1. Certain records that included the account balances for the patent and shareholders' equity items were lost. However, the controller told you that a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.3. That is, total liabilities are 130% of total shareholders' equity. Retained earnings at the beginning of the year was $6,200. Net income for 2021 was $2,100 and $500 in cash dividends were declared and paid to shareholders. 2. Management intends to sell the investments in the next six months. 3. Interest on both the notes and the bonds is payable annually 4. The notes payable are due in annual installments of $1,550 each. 5. Deferred revenue will be recognized as revenue equally over the next two fiscal years. 6. The common stock represents 500,000 shares of no par stock authorized, 360,000 shares issued and outstanding. ences Required: Prepare a complete, corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.) SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2021 (5 in 000s, except share data) Assets Current assets: Net accounts receivable