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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

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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. Additional information ( $ in 000 s): 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 1.2. That is, total liabilities are 120% of total shareholders' equity. Retained earnings at the beginning of the year was $7,000. Net income for 2024 was $2,300, and $300 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 $1,750 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, 400,000 shares issued and outstanding. Required: Prepare a complete, corrected, classified balance sheet. Note: Amounts to be deducted should be indicated by a minus sign. SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2024 (\$ in 000s) Assets Current assets: Inventory: \begin{tabular}{|c|c|c|} \hline & & \\ \hline & & \\ \hline & & \\ \hline Total current assets & & \\ \hline Property, plant, and equipment: & & \\ \hline & & \\ \hline & & \\ \hline Net property, plant, and equipment & & \\ \hline \end{tabular} Intangible assets: \begin{tabular}{|c|c|} \hline & \\ \hline Total assets & Liabilities and Shareholders' Equity \\ \hline \end{tabular} Current liabilities: \begin{tabular}{|l|l|l|} \hline & & \\ \hline & & \\ \hline Total long-term liabilities & & \\ \hline Total liabilities & & \\ \hline Shareholders' equity: & & \\ \hline & & \\ \hline & & \\ \hline Total shareholders' equity & & \\ \hline \end{tabular}

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