The following information is available relating to the activities of Johnson Co. as of December 31, 2011.

Question:

Cash balance on 12/31/11 is $8,000.

Short-term investments have a fair market value of $40,000 on 12/31/11.

Accounts receivable balance of $125,000 on 12/31/11 includes $2,400 that is not likely to be collected.

Inventory costing $165,000 has a replacement cost (market value) of $161,000 on 12/31/1112/31/11.

Buildings having a fair market value of $68,500 were purchased for $35,000 and have accumulated depreciation of $8,000.

Accounts payable at year-end total $110,000.

Taxes payable at year-end total $29,400.

Balance in the long-term notes payable account at the end of the period is $79,100.

Fair market value of the Johnson Co. stock is $10 per share on 12/31/11. When originally issued, 12,500 shares were sold for $8 per share.

The total amount of net income earned by Johnson Co. since its inception several years ago is $65,000. Over that same period, Johnson Co. has paid $24,900 in dividends.

REQUIRED:

Prepare a balance sheet as of 12/31/11 in proper form for Johnson Co. Would you invest in this company? Why or why not? Reformat the balance using the balance sheet format used by Unilever, illustrated to pp. 54. Does this format highlight anything differently?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...