Balance Sheet from Adjusted Trial Balance

The following is the alphabetical adjusted trial balance of Meadows Company on December 31, 2019:

	Debits		Credits
Accounts Payable			$ 9,800
Accounts Receivable	$ 20,000
Accrued Payables			7,100
Accumulated Depreciation			44,000
Accumulated Other Comprehensive Loss	1,000
Additional Paid-in Capital			50,600
Cash	7,900
Common Stock, $5 par			29,600
Cost of Goods Sold	179,500
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
Income Taxes Payable			7,500
Interest Expense	4,300
Inventories	32,000
Investment in Held-to-Maturity Bonds	36,000
Long-Term Debt			57,600
Long-Term Receivables	38,600
Marketable Securities (short-term)	10,200
Patents (net)	13,000
Prepaid Insurance	5,000
Property, Plant, and Equipment	148,000
Retained Earnings, 1/1/19			69,000
Sales			270,000
Selling Expenses	21,500
	$563,900		$563,900

Required:

Question Content Area

1. Prepare Meadows's December 31, 2019, balance sheet.

Meadows Company Balance Sheet December 31, 2019
Assets
Current Assets:
Accounts payableAccrued payablesAccumulated other comprehensive lossAdditional paid-in capitalCashCommon stock, $5 parCurrent portion of long-term debtDeferred taxes payableIncome taxes payableInvestment in held-to-maturity bonds		$ fill in the blank b138910d5fb4fd3_2
Accounts payableAccrued payablesIncome taxes payableInvestment in held-to-maturity bondsLong-term debtLong-term receivablesMarketable securities (short-term)Patents (net)Property, plant, and equipmentRetained earnings		fill in the blank b138910d5fb4fd3_4
Accounts payableAccounts receivableDeferred taxes payableIncome taxes payableInvestment in held-to-maturity bondsLong-term debtLong-term receivablesPatents (net)Property, plant, and equipmentRetained earnings		fill in the blank b138910d5fb4fd3_6
Accounts payableAccrued payablesAccumulated other comprehensive lossAdditional paid-in capitalCommon stock, $5 parCurrent portion of long-term debtDeferred taxes payableIncome taxes payableInventoriesInvestment in held-to-maturity bonds		fill in the blank b138910d5fb4fd3_8
Accounts payableAccrued payablesAccumulated other comprehensive lossAdditional paid-in capitalCommon stock, $5 parLong-term debtPatents (net)Prepaid insuranceProperty, plant, and equipmentRetained earnings		fill in the blank b138910d5fb4fd3_10
Total current assets			$ fill in the blank b138910d5fb4fd3_11
Long-Term Investments:
Accounts payableAccounts receivableAccrued payablesDeferred taxes payableInventoriesInvestment in held-to-maturity bondsLong-term debtPatents (net)Prepaid insuranceRetained earnings		$ fill in the blank b138910d5fb4fd3_13
Accounts payableAccounts receivableCashCommon stock, $5 parCurrent portion of long-term debtInventoriesLong-term debtLong-term receivablesPatents (net)Prepaid insurance		fill in the blank b138910d5fb4fd3_15	fill in the blank b138910d5fb4fd3_16
Property, Plant, and Equipment:
Accounts payableAccounts receivableAccrued payablesAccumulated other comprehensive lossAdditional paid-in capitalCashLong-term receivablesPrepaid insuranceProperty, plant, and equipmentRetained earnings		$ fill in the blank b138910d5fb4fd3_18
Add: Accounts payableAdd: Accumulated depreciationAdd: Accumulated other comprehensive lossAdd: Allowance for doubtful accountsAdd: Discount on bonds payableLess: Accounts payableLess: Accumulated depreciationLess: Accumulated other comprehensive lossLess: Allowance for doubtful accountsLess: Discount on bonds payable		fill in the blank b138910d5fb4fd3_20	fill in the blank b138910d5fb4fd3_21
Intangible Assets:
Accounts payableAccounts receivableAccrued payablesCashCommon stock, $5 parInventoriesInvestment in held-to-maturity bondsPatents (net)Prepaid insuranceRetained earnings			fill in the blank b138910d5fb4fd3_23
Total Assets			$ fill in the blank b138910d5fb4fd3_24
Liabilities
Current Liabilities:
Accounts payableAccounts receivableAccumulated other comprehensive lossAdditional paid-in capitalCashCommon stock, $5 parDeferred taxes payableInventoriesInvestment in held-to-maturity bondsPatents (net)		$ fill in the blank b138910d5fb4fd3_26
Accounts receivableAccrued payablesDeferred taxes payableInventoriesInvestment in held-to-maturity bondsLong-term debtLong-term receivablesPrepaid insuranceProperty, plant, and equipmentRetained earnings		fill in the blank b138910d5fb4fd3_28
Accounts receivableAccumulated other comprehensive lossAdditional paid-in capitalCashCommon stock, $5 parDeferred taxes payableIncome taxes payableInventoriesProperty, plant, and equipmentRetained earnings		fill in the blank b138910d5fb4fd3_30
Accounts receivableAccumulated other comprehensive lossAdditional paid-in capitalCashCommon stock, $5 parCurrent portion of long-term debtDeferred taxes payablePrepaid insuranceProperty, plant, and equipmentRetained earnings		fill in the blank b138910d5fb4fd3_32
Total current liabilities			$ fill in the blank b138910d5fb4fd3_33
Long-Term Liabilities:
Accounts payableAccounts receivableAccumulated other comprehensive lossAdditional paid-in capitalLong-term debtLong-term receivablesMarketable securities (short-term)Prepaid insuranceProperty, plant, and equipmentRetained earnings			fill in the blank b138910d5fb4fd3_35
Other Liabilities:
Accounts payableCashCommon stock, $5 parDeferred taxes payableInventoriesMarketable securities (short-term)Patents (net)Prepaid insuranceProperty, plant, and equipmentRetained earnings			fill in the blank b138910d5fb4fd3_37
Total Liabilities			fill in the blank b138910d5fb4fd3_38
Shareholders' Equity
Contributed Capital:
Accounts payableAccounts receivableAccrued payablesAccumulated other comprehensive lossCashCommon stock, $5 parCurrent portion of long-term debtIncome taxes payableMarketable securities (short-term)Property, plant, and equipment		$ fill in the blank b138910d5fb4fd3_40
Accounts payableAccounts receivableAccrued payablesAccumulated other comprehensive lossAdditional paid-in capitalCashLong-term receivablesPatents (net)Prepaid insuranceProperty, plant, and equipment		fill in the blank b138910d5fb4fd3_42
Total contributed capital			$ fill in the blank b138910d5fb4fd3_43
Accounts payableAccounts receivableAdditional paid-in capitalCashCommon stock, $5 parInvestment in held-to-maturity bondsPatents (net)Prepaid insuranceProperty, plant, and equipmentRetained earnings			fill in the blank b138910d5fb4fd3_45
Accounts payableAccounts receivableAccrued payablesAccumulated other comprehensive lossCashCommon stock, $5 parCurrent portion of long-term debtIncome taxes payableInvestment in held-to-maturity bondsMarketable securities (short-term)			fill in the blank b138910d5fb4fd3_47
Total shareholders' equity			$ fill in the blank b138910d5fb4fd3_48
Total liabilities and shareholders' equity			$ fill in the blank b138910d5fb4fd3_49

Question Content Area

2. Next Level Compute the debt-to-assets ratio. Round your answer to two decimal places.

fill in the blank f978ad07402cf8c_1%

What does it indicate about Meadows at the end of 2019? Round your answer to two decimal places.

This ratio reveals that only fill in the blank f978ad07402cf8c_2% of Meadowss

assetsequityliabilities

have been financed with debt.