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The current asset section of Scruggs Inc.'s balance sheet as of June 30, 2022 consists of cash, accounts receivable, and prepaid expenses. Balances in cash
The current asset section of Scruggs Inc.'s balance sheet as of June 30, 2022 consists of cash, accounts receivable, and prepaid expenses. Balances in cash and prepaid expenses are $26,000 and 18,000, respectively (accounts receivable balance is unknown). Other assets include equipment of $130,000 and patent of $50,000. Total shareholders' equity is $150,000. The beginning balance in retained earnings was $75,000, current year net income is $20,000, and current year dividends paid are $8,000. The current ratio at year-end is 1.25, and the debt-to-equity ratio is 0.8. Using this information, prepare the classified balance sheet as of June 30, 2022 (complete and with good form, including headings). (Basic grid provided below in case you are as bad at me at writing in straight lines.)
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