Pharoah Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city areas. At the end of the company’s fiscal year on November 30, 2022, these accounts appeared in its adjusted trial balance.
Accounts Payable $ 26,400
Accounts Receivable 17,100
Accumulated Depreciation—Equipment 68,000
Cash 8,000
Common Stock 35,000
Cost of Goods Sold 609,960
Freight-Out 6,440
Equipment 159,160
Depreciation Expense 13,700
Dividends 12,000
Gain on Disposal of Plant Assets 2,000
Income Tax Expense 10,000
Insurance Expense 9,000
Interest Expense 5,000
Inventory 26,100
Notes Payable 43,500
Prepaid Insurance 6,000
Advertising Expense 33,500
Rent Expense 34,000
Retained Earnings 14,100
Salaries and Wages Expense 118,740
Sales Revenue 904,000
Salaries and Wages Payable 6,000
Sales Returns and Allowances 20,000
Utilities Expense 10,300

Note: This question is not complete as the requirement is omitted. The complete question is therefore presented before answering the question. See the attached pdf file for the complete question with the requirement.

The answer to the question is now presented as follows:

Prepare a classified balance sheet. (List current assets in order of liquidity.)

Note: See the third part of the attached excel file for the classified balance sheet.

A classified balance sheet can be described as a balance sheet that shows assets, liabilities, and shareholders' equity of a firm that are put or classified into different subcategories of accounts.

Note that in the attached excel file, the Income Statement and the Retained Earning Statement are prepared first in order to obtain the ending retained earning that is needed under the Stockholders' Equity in the classified balance sheet.