Bruno Corp. has decided to expand its operations. The bookkeeper recently completed the following statement of financial
Question:
Bruno Corp. has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in order to obtain additional funds for expansion:
BRUNO CORP. Statement of Financial Position For the Year Ended December 31, 2014 | ||||
Current assets | ||||
Cash (net of bank overdraft of $35,000) | $ | 290,000 | ||
Accounts receivable (net) | 510,000 | |||
Inventory at the lower of cost and net realizable value | 551,000 | |||
Fair Value-NI investments (at costfair value $180,000) | 150,000 | |||
Property, plant, and equipment | ||||
Building (net) | 720,000 | |||
Equipment (net) | 180,000 | |||
Land held for future use | 335,000 | |||
Intangible assets | ||||
Goodwill | 90,000 | |||
Investment in bonds to be held until maturity, at amortized cost | 97,000 | |||
Prepaid expenses | 22,000 | |||
Current liabilities | ||||
Accounts payable | 225,000 | |||
Notes payable (due next year) | 295,000 | |||
Pension obligation | 101,000 | |||
Rent payable | 59,000 | |||
Premium on bonds payable | 64,000 | |||
Longterm liabilities | ||||
Bonds payable | 570,000 | |||
Shareholders equity | ||||
Common shares, unlimited authorized, 310,000 issued | 310,000 | |||
Contributed surplus | 370,000 | |||
Retained earnings | ? |
(a)
Prepare a revised statement of financial position using the available information. Assume that the bank overdraft relates to a bank account held at a different bank than the account with the cash balance. Assume that the accumulated depreciation balance for the buildings is $230,000 and that the accumulated depreciation balance for the equipment is $135,000. The allowance for doubtful accounts has a balance of $22,000. The pension obligation is considered a long-term liability. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)
Bruno Corp. Statement of Financial Position December 31, 2014 |
Assets |
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Liabilities and Shareholders Equity |
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$ |
Show List of Accounts |
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