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The following is the balance sheet of Korver Supply Company at December 31, 2015.

KORVER SUPPLY COMPANY
Balance Sheet
At December 31, 2015
Assets
Cash	$	125,000
Accounts receivable		250,000
Inventories		200,000
Furniture and fixtures, net		145,000
Total assets	$	720,000
Liabilities and Shareholders Equity
Accounts payable (for merchandise)	$	200,000
Note payable		210,000
Interest payable		8,400
Common stock		100,000
Retained earnings		201,600
Total liabilities and shareholders' equity	$	720,000

Transactions during 2016 were as follows:

1.	Sales to customers on account	$	860,000
2.	Cash collected from customers		840,000
3.	Purchase of merchandise on account		550,000
4.	Cash payment to suppliers		560,000
5.	Cost of merchandise sold		500,000
6.	Cash paid for operating expenses		220,000
7.	Cash paid for interest on note		16,800

The note payable is dated June 30, 2015 and is due on June 30, 2017. Interest at 8% is payable annually on June 30. Depreciation on the furniture and fixtures for the year is $26,000. The furniture and fixtures originally cost $360,000.

Required:

Prepare a classified balance sheet at December 31, 2016 (ignore income taxes).

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