
Answer and Explanation:
The preparation of the classified balance sheet is presented below:
Buttercup Company
Balance Sheet
December 31, 2022
(in thousands)
Assets
Current Assets Â
Cash $2,600 Â
Short-term investments $3,690 Â
Accounts receivable $1,696 Â
Inventories $1,756 Â
Prepaid expenses $880 Â
Total current assets $10,622
Long-term investments $1,100
Property, plant, and equipment Â
Property, plant, and equipment $11,500 Â
Less: Accumulated depreciation -$3,655 Â Â $7,845
Total assets $19,567
Liabilities and Owner's Equity
Current liabilities Â
Notes payable in 2022 $1,000 Â
Accounts payable $1,444 Â
Total current liabilities  $2,444
Long-term liabilities Â
Mortgage payable $2443 Â
Notes payable (after 2022) $1,200 Â
Total long-term liabilities $3,643
Total liabilities $6,087
Owner's equity Â
Owner’s capital $13,480 ($5,000 + $8,480)
Total liabilities and owner's equity $19,567