Question - The trial balance for Company XYZ, listed the following account balances at December 31, 2016, the end of its fiscal year:
cash, $16,000;
accounts receivable, $11,000;
inventories, $25,000;
equipment (net), $80,000;
accounts payable, $14,000;
wages payable, $9,000;
interest payable, $1,000;
note payable (due in 18 months), $30,000;
common stock, $50,000.
1) Calculate total current assets and total current liabilities that would appear in the company's year-end balance sheet.
2) Determine the year-end balance in retained earnings for Company XYZ
3) Show a classified balance sheet for Company XYZ. The equipment originally cost $140,000.
4) Why would investors prefer to see a classified balance sheet? Explain how such presentation and information is useful to them.