The Following Balances Are Available for Thompson Company on December

question 86

Essay

The following balances are available for Thompson Company on December 31,2015:
$$\begin{array} { l l } \text { Accumulated depreciation } & \$ 21,800 \\\text { Accounts payable } & 11,200 \\\text { Accounts receivable } & 9,800 \\\text { Additional paid-in capital } & 24,000 \\\text { Common stock } & 6,000 \\\text { Cash } & 7,400 \\\text { Fixed assets } & 89,400 \\\text { Interest payable } & 2,400 \\\text { Inventory } & 13,600 \\\text { Long-term notes payable } & 28,000 \\\text { Trepaid rent } & 2,500 \\\text { Retained earrings } & ? \\\text { Nages payable } & 6,400\end{array}$$
Required:
Prepare a classified balance sheet at December 31,2015.

---

Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, usually to ensure liquidity.

Manufacturing Budget

A planned budget for manufacturing operations, detailing the projected costs associated with production.

Traditional Budgeting

An approach to budgeting focusing on incremental changes to the previous year's budget rather than starting from zero.

Activity-Based Budgeting

A budgeting approach that considers the underlying activities and costs as the bases for budgets, focusing on cost drivers.