Can somebody help me fix this so it's all right?
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, 2018 ($ in 000s) Assets Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment Accumulated depreciation-equipment Patent $ 2,250 5,500 (1,400) 7,000 2,200 15,550 4,000 3,250 19,000 (5,200) $ ? Total assets Liabilities and shareholders' Equity Current liabilities: Accounts payable Note payable Interest payable-note Deferred revenue Total current liabilities Long-term liabilities: Bonds payable Interest payable-bonds Shareholders' equity: Common stock Retained earnings Total liabilities and shareholders' equity $ 6,200 6,000 1,100 5,000 18,300 6,500 400 $ ? ? ? 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 1.2. That is, total liabilities are 120% of total shareholders' equity. Retained earnings at the beginning of the year was $6,000. Net income for 2018 was $2,050 and $350 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 note and the bonds is payable annually. 4. The note payable is due in annual installments of $1,500 each. 5. Deferred revenue will be recognized as revenue equally over the next two fiscal years. 6. The common stock represents 600,000 shares of no par stock authorized, 350,000 shares issued and outstanding. Required: Prepare a complete, corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.) SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2018 ($ in 000s, except share data) Assets Current assets Cash 2,250 4,000 Short-term investments Accounts receivable, net of allowance 1,400 X 5,500 X Inventories $ Finished goods Raw materials and work in process 7,000 3,250 2,200 X Prepaid expenses Accumulated depreciation 12,450 5,200 29,400 Total current assets Property, plant, and equipment Equipment 19,000 Intangible assets 19,000 Patent 9,600 58,000 Total assets Liabilities and Shareholders' Equity Current liabilities Accounts payable Interest payable 6,200 1,500 2,500 Deferred revenue Total current liabilities 10,200 Long-term liabilities Interest payable X $ 400 Deferred revenue 2,500 5,600 Note payable Bonds payable 6,500 15,000 25,200 Total current liabilities Shareholders' equity Common stock 13,300 7,700 Retained earnings 21,000 Total shareholders' equity Total liabilities and shareholders' equity $ 46,200
