Balance Sheet from Adjusted Trial Balance The following is the alphabetical adjusted trial balance of the Meadows Company on December 31, 2007:
|
Debits |
Credits |
|
Accounts payable |
$9,800 |
|
Accounts receivable |
$18,000 |
|
Accrued payables |
6,500 |
|
Accumulated depreciation |
44,000 |
|
Additional paid in capital |
50,600 |
|
Cash |
7,900 |
|
Common stock, $5 par |
29,600 |
|
Cost of goods sold |
175,500 |
|
Current portion of long term debt |
6,200 |
|
Deferred taxes payable |
12,500 |
|
Dividends distributed |
7,000 |
|
General expenses |
27,560 |
|
Income tax expense |
12,340 |
|
Debits |
Credits |
|
Income taxes payable |
7,500 |
|
Interest expense |
4,300 |
|
Inventories |
32,000 |
|
Investment in held to maturity bonds |
36,000 |
|
Long term debt |
56,300 |
|
Long term receivables |
38,600 |
|
Marketable securities (short term) |
10,100 |
|
Patents (net) |
13,000 |
|
Prepaid insurance |
5,000 |
|
Property, plant, and equipment |
148,000 |
|
Retained earnings, 1/1/07 |
64,800 |
|
Sales |
278,000 |
|
Sales returns |
8,000 |
|
Selling expenses |
21,500 |
|
Unrealized decrease in value of availablefor sale securities |
1,000 |
|
$565,800 |
$565,800 |
Required
Prepare the December 31, 2007 balance sheet of the Meadows Company. Compute the debt ratio.