Using the information in Exercise 12-15, prepare a classified balance sheet at December 31, 2020, and then answer each of the following questions (assume that the preferred shares are non-cumulative; round percentages to the nearest whole percent):

1. What percentage of the total assets is owned by the shareholders?

2. What percentage of Spicer Inc. is equity financed?

3. What percentage of Spicer Inc. is financed by debt?

4. What percentage of the total assets is owned by the common shareholders?

5. What percentage of the assets is financed by the preferred shareholders?

6. What are the advantages to the common shareholders of issuing preferred shares over additional common shares?

Exercise 12-15

Spicer Inc. showed the following alphabetized list of adjusted account balances at December 31, 2020:

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Accounts Payable Accounts Receivable. $ 25,560 Income Tax Expense. Land. Notes Payable, due in 2023 Operating Expenses. Preferred Shares Retained Earnings. Revenue. Warehouse.. $ 40,400 115,600 39,000 10,540 Accum. Deprec., Equip. Accum. Deprec., Warehouse Cash. Cash Dividends. Common Shares Equipment. 109,000 39,000 27,520 269,500 126,800 21,080 8,200 19,400 110,000 78,200