Using the following information, prepare a balance sheet for Midsize Corporation:

Total Current Assets
$11,800,000
Gross Fixed Assets
$15,000,000

Cash
?
Stockholders' Equity
$6,450,000

Inventory
$5,800,000
Accrued Expenses
$600,000

Accounts payable
$4,200,000
Notes Payable
$3,800,000

Taxes Payable
$200,000
Retained Earnings
?

Accrued Depreciation
$6,800,000
Long-term Debt
$4,750,000

Accounts Receivable
$3,600,000
Common Stock
($1 par) = $2,000,000

Marketable Securities
$2,000,000
Capital Paid In Excess of Par
$1,000,000

To prepare a balance sheet for Midsize Corporation, we will use the following formula:

Assets = Liabilities + Stockholders' Equity

Let's calculate each component of the balance sheet:

1. Total Current Assets:
- Cash
- Inventory
- Accounts Receivable
- Marketable Securities

Total Current Assets = Cash + Inventory + Accounts Receivable + Marketable Securities = $11,800,000

2. Gross Fixed Assets:
- Accrued Depreciation

Net Fixed Assets = Gross Fixed Assets - Accrued Depreciation = $15,000,000 - $6,800,000 = $8,200,000

3. Liabilities:
- Accounts Payable
- Notes Payable
- Taxes Payable
- Long-term Debt

Total Liabilities = Accounts Payable + Notes Payable + Taxes Payable + Long-term Debt = $4,200,000 + $3,800,000 + $200,000 + $4,750,000 = $12,950,000

4. Stockholders' Equity:
- Common Stock ($1 par) = $2,000,000
- Capital Paid In Excess of Par = $1,000,000
- Retained Earnings (to be found)

Equity = Common Stock + Capital Paid In Excess of Par + Retained Earnings = $2,000,000 + $1,000,000 + Retained Earnings = $6,450,000

Now, let's rearrange the formula and calculate the Retained Earnings:

Retained Earnings = Assets - Liabilities - Stockholders' Equity
Retained Earnings = ($11,800,000 + $8,200,000) - $12,950,000 - $6,450,000
Retained Earnings = $20,000,000 - $12,950,000 - $6,450,000
Retained Earnings = $600,000

Now, we have all the necessary components to prepare the balance sheet for Midsize Corporation:

Balance Sheet:

Assets
--------------------------------------------------------------
Current Assets:
Cash – $11,800,000
Inventory – $5,800,000
Accounts Receivable – $3,600,000
Marketable Securities – $2,000,000
Total Current Assets – $11,800,000

Net Fixed Assets:
Gross Fixed Assets – $15,000,000
Accumulated Depreciation – $6,800,000
Net Fixed Assets – $8,200,000

Total Assets – $20,000,000

Liabilities and Stockholders' Equity
--------------------------------------------------------------
Liabilities:
Accounts Payable – $4,200,000
Notes Payable – $3,800,000
Taxes Payable – $200,000
Long-term Debt – $4,750,000
Total Liabilities – $12,950,000

Stockholders' Equity:
Common Stock (Par Value $1 per share) – $2,000,000
Capital Paid In Excess of Par – $1,000,000
Retained Earnings – $600,000

Total Stockholders' Equity – $3,600,000

Total Liabilities and Stockholders' Equity – $20,000,000