Colerain Corporation is a merchandising company that is preparing a budget for the third quarter of the calendar year.

4 Colerain Corporation is a merchandising company that is preparing a budget for the third quarter of the calendar year. Ihe company s balance sheet as of June 30 is shown below COLERAIN CORPORATION Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation $ 90,000 136,000 62,000 300,000 Total assets $588,000 Liabilities and Stockholders' Equity Accounts payable Common shares Retained earnings $ 71,000 400,000 117,000 Total liabilities and stockholders' equity $ 588,000