Required information Assume Down, Inc., was organized on May 1 to compete with Despair, Inc.-a company that sells de-motivational posters and office products. Down, Inc., encountered the following events during its first month of operations. a. Received $43,000 cash from the investors who organized Down, Inc. b. Borrowed $16,000 cash and signed a note due in two years. c. Ordered equipment costing $25,000. d. Purchased $7,000 in equipment, paying $3,000 in cash and signing a six-month note for the balance. e. Received the equipment ordered in (c), paid for half of it, and put the rest on account. Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero DOWN.INC Balance Sheet At May 31 Assets Liabilities Current Assets Current Liabilities S 43,500Notes Payable (short-term) Accounts Payable Cash 4,000 12,500 Total Current Assets 43,500 Total Current Liabilities 16,500 otes Payable (long-term) 16,000 otal Liabilities 32,500 Stockholders' Equity Equipment 32,000 Common Stock 43,000 Dividends Retained Earnings 0 43,000 $75,500 Total Assets 75,500 Total Liabilities and Stockholders' Equity