Question 1 These items are taken from the financial statements of Vaughn Manufacturing at December 31, 2017. Buildings $112,148 Accounts receivable 13,356 Prepaid insurance 3,392 Cash 12,550 Equipment 87,344 Land 64,872 Insurance expense 827 Depreciation expense 5,618 Interest expense 2,756 Common stock 63,600 Retained earnings (January 1, 2017) 42,400 Accumulated depreciation—buildings 48,336 Accounts payable 10,070 Notes payable 99,216 Accumulated depreciation—equipment 19,843 Interest payable 3,816 Service revenue 15,582 Prepare a classified balance sheet. Assume that $14,416 of the note payable will be paid in 2018. (List current assets in order of liquidity and property plant and equipment in order of land, buildings and equipment.)