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Fangled Company Prepared the Following Balance Sheet \quad \quad

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Fangled Company prepared the following balance sheet: \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad Fangled Company \text { Fangled Company }
\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad Balance Sheet \text { Balance Sheet }
\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad December 31, 20×3\text { December 31, } 20 \times 3


 Current Assets:  Cash $6,000 Accounts Receivable 4,000 Inventory 14,000 Total Current Assets 24,000 Current Liabilities:  Accounts Payable $3,000 Wages Payable 2,000 Total Current Liabilities $5,000 Long-term Bond Payable 24,000 Total Liabilities $29,000\begin{array}{l}\begin{array}{lll}\text { Current Assets: }\\\text { Cash } & \$ 6,000 \\\text { Accounts Receivable } & 4,000 \\\text { Inventory } & \underline{14,000} \\\text { Total Current Assets } & 24,000\end{array}\begin{array}{lll}\text { Current Liabilities: }\\\text { Accounts Payable } & \$ 3,000 \\\text { Wages Payable } & 2,000 \\\text { Total Current Liabilities } & \$ 5,000 \\\text { Long-term Bond Payable } & \underline{24,000} \\\text { Total Liabilities } & \$ 29,000\end{array}\end{array}



 Long-term Assets:  Fixed Assets $60,000 Accumulated Depr. (17,000)  Net Fixed Assets 43,000 Total Assets $67,000 Stockholders’ Equity:  Common Stock $12,000 Retained Earnings 26,000 Total Stockholders’ Equity 38,000 Total Liabilities &  Stockholders’ Equity $67,000\begin{array}{l}\begin{array}{lll}\text { Long-term Assets: }\\\text { Fixed Assets } & \$ 60,000 \\\text { Accumulated Depr. } & \underline{(17,000) } \\\text { Net Fixed Assets } & \underline{43,000} \\\text { Total Assets } & \underline{\$ 67,000}\\\\\end{array}\begin{array}{lll}\text { Stockholders' Equity: }\\\text { Common Stock } & \$ 12,000 \\\text { Retained Earnings } & \underline{26,000} \\\text { Total Stockholders' Equity } & \underline{38,000} \\\text { Total Liabilities \& } & \\\text { Stockholders' Equity } &\underline{ \$ 67,000} \end{array}\end{array}

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Definitions:

Appraisal Costs

Costs associated with evaluating and inspecting products or services to ensure they meet quality standards.

Quality Cost Report

A summary of the total expenses associated with preventing, detecting, and correcting defects in products, including appraisal, prevention, and failure costs.

Prevention Costs

Expenses incurred to prevent defects in products or services, including costs of quality planning, training, and preventive maintenance.

Appraisal Costs

The costs associated with measuring, evaluating, or auditing products to ensure they meet quality standards and performance requirements.

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