The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company's controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet. $ 1,950 4,900 (1,100) 6,700 1,9ee 14,350 SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2021 ($ in woes) Assets Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment Accumulated depreciation Patent (net) Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes payable Interest payable (on notes) Deferred revenue Total current liabilities Long-term liabilities: Bonds payable Interest payable (on bonds) 3,700 2,950 22,800 (4,900) $ ? $ 5,900 5,400 800 4,400 16,500 6,200 400 Patent (net) Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes payable Interest payable (on notes) Deferred revenue Total current liabilities Long-term liabilities: Bonds payable Interest payable (on bonds) Shareholders' equity: Common stock Retained earnings Total liabilities and shareholders' equity $ 5,900 5,400 800 4,400 16,500 6,200 400 Additional information ($ in 000s): 1. Certain records that included the account balances for the patent and shareholders' equity items were lost. However, the controller told you that a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.1. That is, total liabilities are 110% of total shareholders' equity. Retained earnings at the beginning of the year was $5.400. Net Income for 2021 was $1,900 and $600 in cash dividends were declared and paid to shareholders. 2. Management intends to sell the investments in the next six months 3. Interest on both the notes and the bonds is payable annually. 4. The notes payable are due in annual installments of $1,350 each. 5. Deferred revenue will be recognized as revenue equally over the next two fiscal years. 6. The common stock represents 600.000 shares of no par stock authorized, 320,000 shares issued and outstanding. Required: Prepare a complete, corrected classified balance sheet (Amounts to be deducted should be indicated by a minus sign.) $ 1,950 4,900 X X $ Assets Current assets: Cash Accounts receivable Allowance for uncollectible accounts Prepaid expenses Net accounts receivable Inventory: Finished goods Raw materials and work in process 1.100 X 1,900 X 800 6700 2950 Short-term investments Total current assets Property, plant, and equipment: 9,650 3,700 21,000 22,000 Equipment 22,000 X Net property, plant, and equipment Intangible assets: Accumulated depreciation Patent (net) Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes payable (4,900) X 6,000 44,100 $ 5,900 1,350 ra (HEL $ UUUU 44,100 Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes payable % Interest payable o Bonds payable Deferred revenue Total current liabilities Long-term liabilities: Notes payable OS 4,050 Bonds payable 6,200 Deferred revenue 2,200 5,900 1,350 800 X 400 2,200 10,650 12,450 23,100 Total long-term liabilities Total liabilities Shareholders' equity: Common stock Retained earnings 14,300 6,700 21,000 Total shareholders' equity Total liabilities and shareholders equity 44,100
