Little Folks Baseball, Inc., was formed by a group of parents to meet a need for a place for kids to play baseball. At the beginning of its second year of operations, its balance sheet appeared as follows:

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Cash LITTLE FOLKS BASEBALL, INC. Balance Sheet April 30, 1999 Assets Accounts receivable Land Total assets $ 56,000 80.000 600,000 $736,000 Labilities: Liabilities and Stockholders' Equity Accounts payable Stockholders' equity Capital stock Retained earnings Total liabilities and stockholders' equity $400,000 $ 64,000 272.000 672,000) $736,000