The following balance sheet was prepared for the Graves Company as of December 31, 2015by an inexperienced accountant. You are to prepare a balance sheet in accordance withGAAP.Graves Co.Balance SheetAs of 12/31/15AssetsCurrent Assets:CashInvestment securitiesAccounts receivable, netInventoryOther current assetsTotal Current AssetsNoncurrent Assets:PPE, netTreasury stockOther noncurrent assetsTotal Noncurrent AssetsTotal Assets$ 12,5008,00021,35031,00014,200$87,050$ 64,8004,50013,600$ 82,900$169,950Liabilities & Shareholdersâ€™ EquityCurrent Liabilities:Accounts payable$ 3,400Other current liabilities2,000Total current liabilities$ 5,400Long-term liabilities32,750Total Liabilities$ 38,150Shareholdersâ€™ Equity:Common StockRetained EarningsTotal Shareholdersâ€™ EquityTotal Liabilities & Shareholdersâ€™Equity$ 50,00081,800$131,800$169,950Additional information you may need to prepare a proper balance sheet as of 12/31/15.SHOW YOUR WORK AND REASONING for each letter. If the information was handledcorrectly, STATE â€œno changes.â€a.b.c.d.e.f.g.h.PPE includes land purchased for $8,000 as an investment. It is scheduled to be soldduring 2016.Investment securities include $2,750 of stock that was purchased in order to give thecompany significant influence over a major supplier by obtaining a seat on their boardof directors.Other current assets include a $4,000 advance to the president of the company that hasno set maturity.Long-term liabilities include bonds payable of $10,500. Of this amount, $2,000represents bonds scheduled to be redeemed in 2016.Cash includes $4,000 that has been set aside to purchase machinery.Long-term liabilities include a $7,000 bank loan. On May 15, 2016, the loan becomesdue on demand.Cash in the amount of $18,000 has been placed in a restricted fund for the redemptionof preferred stock during 2016. Both the cash and the preferred stock have beenremoved from the balance sheet.On December 15, 2015, dividends of $3,500 were declared to be paid to shareholdersof record on January 25. Because these were merely declared, nothing was recorded.