The following balance sheet was prepared by Kraus Company as of December 31, 2010.

Kraus Company

Balance Sheet

as of December 31, 2010

Cash $ 80,000 Accounts payable $ 75,000

Accounts receivable (net) 52,200 Long-term liabilities 100,000

Inventories 57,000 Stockholders' equity 218,200

Investments 76,000

Equipment (net) 96,000

Patents 32,000

$393,200 $393,200

The following additional information is provided:

1. Cash includes the cash surrender value of a life insurance policy $9,000, and a bank overdraft of $2,000 has been deducted.

2. The net accounts receivable balance includes:

(a) accounts receivabledebit balances $60,000;

(b) accounts receivablecredit balances $4,000;

(c) allowance for doubtful accounts $3,800.

3. Investments include investments in common stock, trading $19,000 and available-for-sale $48,000, and franchises $9,000.

4. Equipment costing $7,000 with accumulated depreciation $2,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $30,000.

Required:

Prepare a balance sheet in good form (stockholders' equity details can be omitted.) (35 points)