Presented below is the balance sheet for hhd, inc., at december 31, 2016. current assets $ 676,000 current liabilities $ 476,000 investments 557,000 long-term liabilities 587,000 property, plant, and equipment 2,532,000 shareholders' equity 2,940,000 intangible assets 238,000 total assets $ 4,003,000 total liabilities and shareholders' equity $ 4,003,000 the captions shown in the summarized statement above include the following: a. current assets: cash, $169,000; accounts receivable, $219,000; inventories, $244,000; and prepaid insurance, $44,000.b. investments: investments in common stock, short term, $109,000, and long term, $179,000; and restricted cash, long term, $269,000.c. property, plant, and equipment: buildings, $1,690,000 less accumulated depreciation, $619,000; equipment, $690,000 less accumulated depreciation, $219,000; and land, $990,000.d. intangible assets: patent, $129,000; and copyright, $109,000.e. current liabilities: accounts payable, $119,000; notes payable, short term, $169,000, and long term, $109,000; and taxes payable, $79,000.f. long-term liabilities: bonds payable due 2021.g. shareholders’ equity: common stock, $1,950,000; retained earnings, $990,000. five hundred thousand shares of no par common stock are authorized, of which 390,000 shares were issued and are outstanding. required: prepare a corrected classified balance sheet for hhd, inc., at december 31, 2016. (amounts to be deducted should be indicated by a minus sign.)

2016Balance Sheet

$169,000Cash

$109,000Investment in Common Stock

$219,000Accounts Receivable

$244,000Inventory

$44,000  Prepaid Insurances

$785,000  TOTAL CURRENT ASSETS  

$990,000Land

$690,000Machinery and Equipment

-$219,000Accum Depreciation

$1,690,000Buildings

-$619,000Accum Depreciation

$129,000Patents

$269,000Restricted Cash

$109,000Copyright

$179,000Investment in Common Stock

$3,218,000  TOTAL NONCURRENT ASSETS  

$4,003,000  TOTAL ASSETS  

$119,000   Accounts Payable  

$79,000   Taxes Payable  

$169,000  Notes  Payable  

$367,000  TOTAL CURRENT LIABILITIES  

$587,000  Bonds Payable 2021  

$109,000  Notes Payable  

$696,000  TOTAL NONCURRENT LIABILITIES  

$1,063,000  TOTAL LIABILITIES  

$1,950,000  Common Stock  

$990,000  Retained Earnings  

$2,940,000  TOTAL EQUITY  

$4,003,000  TOTAL EQUITY + LIABILITIES  

Explanation:

Cash

Investment in Common Stock

Accounts Receivable

Inventory

Prepaid Insurances

Land

Machinery and Equipment

Accum Depreciation

Buildings

Accum Depreciation

Patents

Restricted Cash

Copyright

Investment in Common Stock

Accounts Payable  

Taxes Payable  

Notes  Payable  

Bonds Payable 2021  

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.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.