The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the companys controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet.

Additional information ($ in 000s):

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 $6,400. Net income for 2018 was $2,150 and $450 in cash dividends were declared and paid to shareholders.

Management intends to sell the investments in the next six months.

Interest on both the note and the bonds is payable annually.

The note payable is due in annual installments of $1,600 each.

Deferred revenue will be recognized as revenue equally over the next two fiscal years.

The common stock represents 600,000 shares of no par stock authorized, 370,000 shares issued and outstanding.

Required: Prepare a complete, corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2018 ($ in 000s) Assets Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory Prepaid expenses $ 2,450 5,900 (1,600) 7,200 2,400 16,350 Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment Accumulated depreciation-equipment Patent 4,200 3,450 24,000 5,400 Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Note payable Interest payable-note Deferred revenue $6,400 6,400 1,300 5,400 19,500 Total current liabilities Long-term liabilities: Bonds payable Interest payable-bonds Common stock Retained earnings 6,700 200 Shareholders' equity: Total liabilities and shareholders' equity