Exercise 5-5

Uhura Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.

UHURA COMPANY BALANCE SHEET FOR THE YEAR ENDED 2014
Current assets
Cash		$232,850
Accounts receivable (net)		342,850
Inventory (lower-of-average-cost-or-market)		403,850
Equity investments (trading)-at cost (fair value $124,960)		144,960
Property, plant, and equipment
Buildings (net)		574,960
Equipment (net)		164,960
Land held for future use		179,960
Intangible assets
Goodwill		82,850
Cash surrender value of life insurance		92,850
Prepaid expenses		14,850
Current liabilities
Accounts payable		139,960
Notes payable (due next year)		127,850
Pension obligation		86,960
Rent payable		51,850
Premium on bonds payable		55,850
Long-term liabilities
Bonds payable		504,960
Stockholders