Question

The December 31, 2016, post-closing trial balance ($ in thousands) for Libby Corporation is presented below:

	Debits	Credits
Cash	32,500
Investment (long-term)	75,000
Accounts receivable	50,000
Allowance for uncollectible accounts		10,500
Prepaid insurance	9,000
Inventories	200,000
Land	65,000
Buildings	240,000
Accumulated depreciation–buildings		70,000
Equipment	162,500
Accumulated depreciation–equipment		50,000
Patents (unamortized balance)	9,500
Accounts payable		47,500
Notes payable, due 2017		85,000
Interest payable		20,000
Bonds payable, due 2026		220,000
Common stock, no par, 36,000 shares authorized, issued, and outstanding		288,000
Retained earnings		52,500
Totals	843,500	843,500

Required:

Prepare a classified balance sheet for Libby Corporation at December 31, 2016. (Enter your answers in the order of their liquidity. Negative amounts should be entered by a minus sign. Enter your answers in thousands of dollars.)

Answer 1

Libby Corporation
At December 31, 2016
(in thousands)
Assets
Cash	$32,500
Accounts receivable	50,000
Less: Allowance for uncollectible accounts	(10,500)
Inventories	200,000
Prepaid insurance	9,000
Total current assets		$281,000
Investments		75,000
Property, plant, and equipment:
Land	65,000
Buildings	240,000
Equipment	162,500
	467,500
Less: Accumulated depreciation	(120,000)
Net property, plant, and equipment		347,500
Intangibles:
Patents		9,500
Total assets		$713,000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$47,500
Notes payable, due 2017	85,000
Interest payable	20,000
Total current liabilities		$152,500
Long-term liabilities:
Bonds payable, due 2026		220,000
Shareholders' equity:
Common stock	288,000
Retained earnings	52,500
Total shareholders' equity		340,500
Total liabilities and shareholders' equity		$713,000