Reference no: EM131761486

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.