The Following Is a List of Balance Sheet Accounts (In

question 61

Essay

The following is a list of balance sheet accounts (in random order) and balances for the Community Naval Supply Company. They have been updated as of December 31, 2012. $\begin{array}{lr}\text { Building } & \$ 30,000 \\\text { Land } & 10,000 \\\text { Retained Earnings } & 40,000 \\\text { Notes Payable (due in 3 } & 17,000 \\\text { years) } & \\\text { Inventory } & 60,000\\\text { Equipment } & 12,000 \\\text { Accounts Payable } & 14,000 \\\text { Common Stock } & 60,000 \\\text { Accum. Deprec. - Building } & 10,000 \\\text { Accum. Deprec.- Equipment } & 4,000 \\\text { Cash } & 10,000 \\\text { Unearned Revenue } & 2,000 \\\text { Accounts Receivable } & 25,000\end{array}$
Required:
Prepare a classified balance sheet for Community Naval Supply Company at December 31, 2012.

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Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business.

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, indicating how much contributes to covering fixed costs and generating profit.

Pretax Income

The income earned by a business before any taxes have been deducted.

Target Pretax Income

The income a company aims to achieve before deducting taxes, often set for budgeting or goal-setting purposes.