Problem 3-8 (Static) Balance sheet; errors; missing amounts [LO3-2, 3-3]

The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the companys 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 000s)
Assets
Current assets:
Cash			$	1,250
Accounts receivable				3,500
Allowance for uncollectible accounts				(400	)
Finished goods inventory				6,000
Prepaid expenses				1,200
Total current assets				11,550
Long-term assets:
Investments				3,000
Raw materials and work in process inventory				2,250
Equipment				15,000
Accumulated depreciation				(4,200	)
Patent (net)				?
Total assets			$	?
Liabilities and Shareholders Equity
Current liabilities:
Accounts payable			$	5,200
Notes payable				4,000
Interest payable (on notes)				100
Deferred revenue				3,000
Total current liabilities				12,300
Long-term liabilities:
Bonds payable				5,500
Interest payable (on bonds)				200
Shareholders equity:
Common stock	$	?
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 1.2. That is, total liabilities are 120% of total shareholders equity. Retained earnings at the beginning of the year was $4,000. Net income for 2021 was $1,560 and $560 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 $1,000 each.
5. Deferred revenue will be recognized as revenue equally over the next two fiscal years.
6. The common stock represents 400,000 shares of no par stock authorized, 250,000 shares issued and outstanding.

Required: Prepare a complete, corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

$ 1250 SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2021 is in 00s, except share data) Assets Current assets Cash Short term investments Accounts receivable 3.500 Allowance for uncollectible accounts (400) Net accounts receivable Inventory Finished goods 6,000 Raw materials and work in process 2.250 OOOO 3.100 OOO 8.250 1.200 13.300 Prepaid pense Total current assets Property, plant, and equipment Equipment Accumulated depreciation Net property, plant and equipment Intangible assets Patentne OO 15,000 (4.2001 10.800 0 24600 S Total assets Liabilities and Shareholders' Equity Current les Accounts payable Notes payable (current maturities of long-term debt) Interest payable Deferred revenue $ 5.200 olololo og 5,200 Total current liabilities Long-term liabilities Notes payable long term Deferred revenue Bonds payable OOO 5,500 0 5,500 10,700 Total long-term liabilities Total abilities Shareholders' equity Common stock Retained earnings OO Total shareholders' equity 0 Total liabilities and shareholders' equity S 10.700