Pasta Company Balance Sheet As of December 31, Year 1 Assets Liabilities Cash Accounts receivable Inventories: * S 5,000 2,000 Accounts payable Other liabiities S 3,000 9.550 12,550 Total current liabilities Raw materials Work in process Finished goods S 5,350 850 9,550 15,750 600 Prepaid insurance Equipment Equit Common stock Retained earnings 11,000 10,600 7,700 Less accun 3,500 7,500 Total Assets $30,850 Total Liabilities and Equity $30,850