Question: As controller for Henderson, you are attempting to reconstruct and revise the fol Henderson Manufacturing Company Balance Sheet At December 31, 2021 ($ in 000s)
As controller for Henderson, you are attempting to reconstruct and revise the fol Henderson Manufacturing Company Balance Sheet At December 31, 2021 ($ in 000s) Assets Current assets: Cash $ 1,250 Accounts receivable Allowance for uncollectible accounts Finished goods inventory 3,750 (600) 7,000 Prepaid expenses Total current assets. Long-term assets: 3,400 14,800 Equipment Investments Raw materials and work in process inventory Accumulated depreciation-equipment Franchise 3,000 3,900 19,500 (9,000) ? Total assets $ 2 Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes payable Interest payable-note Deferred revenue $ 7,200 8,000 400 2,400 Total current liabilities Long-term liabilities: Interest payable-bonds Bonds payable Shareholders' equity: Common stock Retained earnings Total liabilities and shareholders' equity Additional information ($ in 000s): 18,000 7,000 200 $ 2 ? ? ? Additional information ($ in 000s): 1. Certain records that included the account balances for the franchise and shareholders' equity items were lost. However, a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.5. That is, total liabilities are 150% of total shareholders' equity. Retained earnings at the beginning of the year was $3,200. Net income for 2021 was $2,300, and $1,000 in cash dividends were declared and paid to shareholders. 2. The investments represent treasury bills purchased in December 2021 that mature in January 2022. These are considered cash equivalents. 3. Interest on both the notes and the bonds is payable annually. 4. The notes payable account contains one note that is due in annual installments of $800 for each payment due. 5. Deferred revenue will be recognized equally over the next 18 months. 6. The common stock represents 500,000 shares of no par stock authorized, of which 300,000 shares are issued and outstanding. Required: Prepare a complete, corrected, classified balance sheet. (Do not round your intermediate calculations. Enter your answers in the order of their liquidity. Amounts to be deducted should be indicated by a minus sign. Enter your answers in thousands of dollars.) Henderson Manufact order of their liquidity. Amounts to be deducted should be indicated by a minus s Henderson Manufacturing Company Balance Sheet At December 31, 2021 ($ in 000s) Assets Current assets: Inventory: Total current assets Property, plant, and equipment: Net property, plant, and equipment Intangibles: Total assets $ 0 Liabilities and Shareholders' Equity Current liabilities: 0 Intangibles: Total assets $ 0 Liabilities and Shareholders' Equity Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Shareholders' equity: Total shareholders' equity 0 Total liabilities and shareholders' equity $ 0 0
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