The following is an alphabetical listing of Stone Boat Company's balance sheet accounts and account balances on December 31, 2013:

Additional information:
1. The company reports on the balance sheet the net book value of property and equipment and long-term liabilities (known as control accounts). The related details are disclosed in the notes.
2. The straight-line method is used to depreciate property and equipment based upon cost, estimated residual value, and estimated life. The costs of the assets in this account are: land, $29,500; buildings, $164,600, store fixtures, $72,600; and office equipment, $30,000.
3. The accumulated depreciation breakdown is as follows: buildings, $54,600; store fixtures, $37,400; and office equipment, $17,300.
4. The long-term debt includes 12%, $36,000 face value bonds that mature on December 31, 2015, and have an unamortized bond discount of $1,000; 11%, $48,000 face value bonds that mature on December 31, 2019, have a premium on bonds payable of $1,800, and whose retirement is being funded by a bond sinking fund; and a 13% note payable that has a face value of $6,200 and matures on January 1, 2016.
5. The noninterest-bearing note receivable matures on June 1, 2014.
6. Inventory is listed at lower of cost or market: cost is determined on the basis of average cost. 7. The investment in affiliate is carried at cost. The company has guaranteed the interest on 12%. $50.000. 15- year bonds issued by this affiliate, the Jay Company.
8. Common stock has a $10 par value per share. 10.000 shares are authorized, and 1.000 shares were issued during 2013 at a price of $13 per share. resulting in 8.000 shares issued at year-end. 9. Preferred stock has a $50 par value per share, 2,000 shares are authorized, and 140 shares were issued during 2013 at a price of $55 per share, resulting in 640 shares issued at year-end. 10. On January 15, 2014, before the December 31, 2013, balance sheet was issued, a building with a cost of $20,000 and a book value of $7,000 was totally destroyed. Insurance proceeds will amount to only $5,000.
11. Net income and dividends declared and paid during the year were $50,500 and $21,000, respectively.
Required:
1. Prepare Stone Boat's December 31. 2013. balance sheet (including appropriate parenthetical notations).
2. Prepare a statement of shareholders' equity for 2013. (Hint: Work back from the ending account balances.)
3. Prepare notes that itemize the balance sheet control accounts and those necessary to disclose any company accounting policies, contingent liabilities, and subsequent events.
4. Next Level Compute the debt-to-assets ratio at the end of 2013. What is your evaluation of this ratio if it was 39% at the end of 2012?
Use the following information for P4-15 and P4-16: McCormick & Company, Inc. is one of the world's leading producers of spices, herbs, seasonings, condiments, and other flavorings for foods. Its products are sold to consumers, with some of the leading brands of spices and seasonings, as well as to industrial producers of foods. McCormick's consolidated balance sheets for 2009 and 2010 follow.

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Accounts Payable Accounts Receivable Accumulated Depreciation Additional Paid-In Capital on Common Stock Additional Paid-In Capital on Preferred Stock Allowance for Doubtful Accounts Bond Sink ing Fund Cash Common Stock Income Taxes Payable S 19,700 85,300 30,000 91,000 6,800 17,000 32,000 296,700 84,600 37,100 Inventory 109,300 Investment in Affiliate 20,000 3,200 1,600 12,500 13,800 80,000 Long-Term Liabilities (book value) Miscellaneous Current Payables Notes Receivable Preferred Stock Property and Equipment Retained Earnings McCormick's Consolidated Balance Sheets Prepaid Expenses and Other Current Assets 1,015.9 Property, Plant, and Equipment, Net Investments and Other Assets $3,387.8 Liabilities and Shareholders' Equity Current Portion of Long-Term Debt 834.8 Accumulated Other Comprehensive Income Loss) Total Shareholders' Equity Total Liabilities and Shareholders' Equity