Uhura Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.
|
UHURA COMPANY
|
|
BALANCE SHEET
|
|
FOR THE YEAR ENDED 2007
|
|
Current assets
|
|
|
Cash
|
$230,000
|
|
Accounts receivable (net)
|
340,000
|
|
Inventories at lower of average cost or market
|
401,000
|
|
Trading securities-at cost (fair value $120,000)
|
140,000
|
|
Property, plant, and equipment
|
|
|
Building (net)
|
570,000
|
|
Office equipment (net)
|
160,000
|
|
Land held for future use
|
175,000
|
|
Intangible assets
|
|
|
Goodwill
|
80,000
|
|
Cash surrender value of life insurance
|
90,000
|
|
Prepaid expenses
|
12,000
|
|
Current liabilities
|
|
|
Accounts payable
|
135,000
|
|
Notes payable (due next year)
|
125,000
|
|
Pension obligation
|
82,000
|
|
Rent payable
|
49,000
|
|
Premium on bonds payable
|
53,000
|
|
Long-term liabilities
|
|
|
Bonds payable
|
500,000
|
|
Stockholders' equity
|
|
|
Common stock, $1.00 par, authorized 400,000 shares, issued 290,000
|
290,000
|
|
Additional paid-in capital
|
160,000
|
|
Retained earnings
|
?
|
Instructions:
Make a revised balance sheet given the available information. Suppose that the accumulated depreciation balance for the buildings is USD 160,000 and for the office equipment, USD 105,000. The allowance for doubtful accounts has a balance of USD17,000. The pension obligation is considered a long-term liability.