Computing Retained Earnings and Preparing a Classified Balance Sheet The following data, in no particular order, are from the accounts of Brown Corp. as of December 31, 2020, its annual year-end. All amounts are accurate, all accounts have normal balances, and total debits equal total credits. Accounts payable (trade) 516,000 Deferred revenue $4,000 Debt retirement fund (long-term) 8,000 Cash dividends payable 10,000 Accounts receivable 34,000 Inventory 60,000 Income taxes payable 8,000 Land held for future business site 36,000 Short-term investments, marketable securities (cost which approximates fair value) 20,000 Equipment and furniture 140,000 Bonds payable (long term 102,000 Net income for 2020 70,000 Accumulated depreciation, equipment and furniture 12,000 Dividends (cash) declared (a debit) 6,000 Common stock, par S1 (200,000 shares authorized) 140,000 Prepaid expenses (short term) 2,000 Cash 40,000 Patent 8,000 Retained earnings, December 31, 2019 34,000 Prepaid rent (long-term) 4,000 Investment in capital stock of Zinc Products Allowance for doubtful accounts 4,000 Corporation (long-term) 52,000 Premium on common stock 10,000 Required a. Compute the year-end balance of retained earnings. $ 98,000 b. Prepare a classified balance sheet as of December 31, 2020. Do not use negative signs with any of your answers. List investments and current liabilities in the order of the largest dollar amount to the smallest dollar amount. Balance Sheet As of December 31, 2020 Assets Current assets $ 40,000 Cash Accounts receivable Less: Allowance for doubtful accounts TA 34,000 4,000 Short-term investments Inventory Prepaid expenses Total current assets 70,000 20,000 60,000 2,000 152,000 Investments A 52,000 36,000 8,000 96,000 Investment in Zinc Products Corporation Land held for future business site Debt retirement fund Total investments Property, plant, and equipment Equipment and furniture Less: Accumulated depreciation Net property, plant, and equipment Intangible assets Patent Other assets Prepaid rent 140,000 12,000 128,000 8,000 4,000 388,000 $ $ Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Dividends payable Income taxes payable Deferred revenue Total current liabilities Long-term liabilities Bonds payable Stockholders' equity Common stock 16,000 10,000 8,000 4,000 38,000 . 102,000 140,000 A $ Liabilities and Stockholders' Equity Current liabilities Accounts payable Dividends payable Income taxes payable Deferred revenue . 16,000 10,000 8,000 4,000 38,000 . Total current liabilities 102,000 Long-term liabilities Bonds payable Stockholders' equity Common stock Paid-in capital in excess of par-common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 140,000 10,000 34,000 184,000 324,000 $ C. Compute working capital on December 31, 2020. $ 120,000