Okay! then you CAN file a final return! I would still zero out everything in the end of year column on the balance sheet. I have filed many final S-corp returns in private practice and we always zeroed out the end of year even if there is still AR and AP. You have reported all income and expenses, you can collect the remaining moneys and wrap up the business. The M-2 will show ending retained earnings balance. You can't get rid of that. Hope that helps.
