Exercise 5-5 Martinez Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion. MARTINEZ COMPANY BALANCE SHEET FOR THE YEAR ENDED 2017 Current assets Cash $240,000 Accounts receivable (net) 350,000 Inventory (lower-of-average-cost-or-market) 411,000 Equity investments (trading)-at cost (fair value $130,000) 150,000 Property, plant, and equipment Buildings (net) 580,000 Equipment (net) 170,000 Land held for future use 185,000 Intangible assets Goodwill 90,000 Cash surrender value of life insurance 100,000 Prepaid expenses 22,000 Current liabilities Accounts payable 145,000 Notes payable (due next year) 135,000 Pension obligation 92,000 Rent payable 59,000 Premium on bonds payable 63,000 Long-term liabilities Bonds payable 510,000 Stockholders equity Common stock, $1.00 par, authorized 400,000 shares, issued 300,000 300,000 Additional paid-in capital 170,000 Retained earnings ? Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $170,000 and for the equipment, $115,000. The allowance for doubtful accounts has a balance of $27,000. The pension obligation is considered a long-term liability. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Buildings and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

Exercise 5-5 Martinez Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion. $240,000 350,000 411,000 150,000 580,000 170,000 185,000 MARTINEZ COMPANY BALANCE SHEET FOR THE YEAR ENDED 2017 Current assets Cash Accounts receivable (net) Inventory (lower-of-average-cost-or-market) Equity investments (trading)-at cost (fair value $130,000) Property, plant, and equipment Buildings (net) Equipment (net) Land held for future use Intangible assets Goodwill Cash surrender value of life insurance Prepaid expenses Current liabilities Accounts payable Notes payable (due next year) Pension obligation Rent payable Premium on bonds payable Long-term liabilities Bonds payable Stockholders' equity Common stock, $1.00 par, authorized 400,000 shares, issued 300,000 Additional paid-in capital Retained earnings 90,000 100,000 22,000 145,000 135,000 92,000 59,000 63,000 510,000 300,000 170,000 ? Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $170,000 and for the equipment, $115,000. The allowance for doubtful accounts has a balance of $27,000. The pension obligation is considered a long-term liability. (List Current Assets in order of liquidity. List Property, plant and Equipment in order of Buildings and Equipment. Enter account name only and do not provide the descriptive information provided in the question.) MARTINEZ COMPANY Balance Sheet Assets