Your firm has been engaged to examine the financial statements of Buffalo Corporation for the year...

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Your firm has been engaged to examine the financial statements of Buffalo Corporation for the year 2025. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2020. The client provides you with the following information. Buffalo Corporation Balance Sheet December 31, 2025 Assets Liabilities Current assets $1,888,000 Current liabilities $963,000 Other assets 5,175,250 Long-term liabilities 1,439,000 Stockholders' equity 4,661,250 $7,063,250 $7,063,250 An analysis of current assets discloses the following. Cash (restricted in the amount of $306,000 for plant expansion) $581,000 Investments in land 183,000 Accounts receivable less allowance of $30,000 472,000 Inventories (LIFO flow assumption) 652,000 $1,888,000 Other assets include: Prepaid expenses Plant and equipment less accumulated depreciation of $1,405,000 Cash surrender value of life insurance policy Unamortized bond discount $64,000 4,128,000 84,000 53,250 Your firm has been engaged to examine the financial statements of Buffalo Corporation for the year 2025. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2020. The client provides you with the following information. Buffalo Corporation Balance Sheet December 31, 2025 Assets Liabilities Current assets $1,888,000 Current liabilities $963,000 Other assets 5,175,250 Long-term liabilities 1,439,000 Stockholders' equity 4,661,250 $7,063,250 $7,063,250 An analysis of current assets discloses the following. Cash (restricted in the amount of $306,000 for plant expansion) $581,000 Investments in land 183,000 Accounts receivable less allowance of $30,000 472,000 Inventories (LIFO flow assumption) 652,000 $1,888,000 Other assets include: Prepaid expenses Plant and equipment less accumulated depreciation of $1,405,000 Cash surrender value of life insurance policy Unamortized bond discount $64,000 4,128,000 84,000 53,250