Required:

The controller prepared financial statements in the attached contain a number of deficiencies in presentation. Prepare a corrected:

classified balance sheet as of December 31, 2024,

multistep income statement for the year ended December 31, 2024, and

statement of cash flows for the year ended December 31, 2024.

Additional Information:

The companys common stock is traded on an organized stock exchange. The corporation issued 600,000 shares of $10 par value common stock on July 1, 2024. There were 8,000,000 shares issued and outstanding at December 31, 2023.

The investment portfolio consists of short-term investments valued at $14,000,000. The remaining investments will not be sold until the year 2026.

Notes payable consist of three notes:

$12,000,000 one-year note due on September 30, 2025.

$73,000,000 note issued on June 1, 2023. Interest is paid annually on June 1^st with the principal due at maturity, June 1, 2028.

$41,000,000 note due in two equal installments of $20,500,000 plus interest. Payments are scheduled for April 30, 2025 and April 30, 2026.

Interest on the loans has been correctly accrued and is included in accrued liabilities on the balance sheet and interest expense in the income statement.

Included in general and administrative expense is depreciation expense of $15,000,000.