The following is the balance sheet of Korver Supply Company at December 31, 2017. KORVER SUPPLY COMPANY Balance Sheet At December 31, 2017

Assets

Cash $ 120,000

Accounts receivable 300,000

Inventories 200,000

Furniture and fixtures, net 150,000

Total assets $ 770,000

Liabilities and Shareholders Equity

Accounts payable (for merchandise) $ 190,000

Note payable 200,000

Interest payable 6,000

Common stock 100,000

Retained earnings 274,000

Total liabilities and shareholders' equity$ 770,000

Transactions during 2018 were as follows:

1. Sales to customers on account $ 800,000

2. Cash collected from customers 780,000

3. Purchase of merchandise on account 550,000

4. Cash payment to suppliers 560,000

5. Cost of merchandise sold 500,000

6. Cash paid for operating expenses 160,000

7. Cash paid for interest on note 12,000

The note payable is dated June 30, 2017 and is due on June 30, 2019. Interest at 6% is payable annually on June 30. Depreciation on the furniture and fixtures for the year is $20,000. The furniture and fixtures originally cost $300,000.

Required: Prepare a classified balance sheet at December 31, 2018 (ignore income taxes).