Question 19 Sheridan Company was formed on January 1, 2017. At December 31, 2017, Miko Liu, the president and sole stockholder, decided to prepare a balance sheet, which appeared as follows. Sheridan Company Balance Sheet December 31, 2017 Assets Liabilities and Stockholders' Equity Cash $22,400 Accounts payable $33,600 Accounts receivable 56,000 Notes payable 16,800 Inventory 40,320 Boat loan 24,640 Boat 26,880 Stockholders' equity 71,680 Miko willingly admits that she is not an accountant by training. She is concerned that her balance sheet might not be correct. She has provided you with the following additional information. 1. The boat actually belongs to Miko, not to Sheridan Company. However, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. To be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. The inventory was originally purchased for $28,000, but due to a surge in demand Miko now thinks she could sell it for $40,320. She thought it would be best to record it at $40,320. 3. Included in the accounts receivable balance is $11,200 that Miko loaned to her brother 5 years ago. Miko included this in the receivables of Sheridan Company so she wouldn't forget that her brother owes her money. (b) Provide a corrected balance sheet for Sheridan Company. (Hint: To get the balance sheet to balance, adjust stockholders' equity.) ( List assets in order of liquidity.)