The following is the ending balances of accounts at december 31, 2016, for the valley pump corporation. account title debits credits cash 36,000 accounts receivable 78,000 inventories 103,000 interest payable 21,000 marketable securities 66,000 land 142,000 buildings 355,000 accumulated depreciation—buildings 111,000 equipment 97,000 accumulated depreciation—equipment 36,000 copyright (net of amortization) 23,000 prepaid expenses 43,000 accounts payable 76,000 deferred revenues 31,000 notes payable 305,000 allowance for uncollectible accounts 6,000 common stock 310,000 retained earnings 47,000 totals 943,000 943,000 additional information: 1. the $142,000 balance in the land account consists of $111,000 for the cost of land where the plant and office buildings are located. the remaining $31,000 represents the cost of land being held for speculation.2. the $66,000 in the marketable securities account represents an investment in the common stock of another corporation. valley intends to sell one-half of the stock within the next year.3. the notes payable account consists of a $122,000 note due in six months and a $183,000 note due in three annual installments of $61,000 each, with the first payment due in august of 2017.required: prepare a classified balance sheet for the valley pump corporation at december 31, 2016. (amounts to be deducted should be indicated by a minus sign.)

2016Balance Sheet

$36,000  Cash

$33,000  Investment in Common Stock

$72,000  Accounts Receivable

$103,000Inventory

$43,000  Prepaid Expenses

$287,000  TOTAL CURRENT ASSETS  

$31,000  Land

$111,000  Land Offices and Plant

$97,000  Equipment

-$36,000Accum Depreciation

$355,000Buildings

-$111,000  Accum Depreciation

$23,000  Copyright

$33,000  Investment in Common Stock

$503,000  TOTAL NONCURRENT ASSETS  

$790,000  TOTAL ASSETS  

$76,000   Accounts Payable  

$21,000    Interest Payable  

$183,000  Notes Payable  

$31,000    Deferred revenues  

$311,000   TOTAL CURRENT LIABILITIES  

$122,000  Notes Payable  

$122,000  TOTAL NONCURRENT LIABILITIES  

$433,000  TOTAL LIABILITIES  

$310,000  Common Stock  

$47,000    Retained Earnings  

$357,000  TOTAL EQUITY  

$790,000  TOTAL EQUITY + LIABILITIES  

Explanation:

Cash

Investment in Common Stock

Accounts Receivable

Inventory

Prepaid Expenses

Land

Land Offices and Plant

Equipment

Accum Depreciation

Buildings

Accum Depreciation

Copyright

Investment in Common Stock

Accounts Payable  

Interest Payable  

Notes Payable  

Deferred revenues  

Notes Payable  

Common Stock  

Retained Earnings  

Liquidity is defined as the speed of the assets that will be converted into cash, Assets that take less days to buy or sell are more liquid than others.

Cash is the most liquid asset, then Accounts Receivable and Inventories for the end, in the middle there are different assets such as capital investments.

Prepaid expenses are not liquid because these accounts do not mean that the company can get cash unless the company has rights to something.

answer; functional fixedness;