P22-1 jeopardy Inc.'s CFO has just left the ofce of the company president after a meeting about the draft statement of nancial position at April 30, 2014, and income statement for the year ended. (Both are reproduced below.) "Our liquidity position looks healthy," the president had remarked. "Look at the current and acid test ratios, and the amount of working capital we have. And between the goodwill write-off and depreciation, we have almost $23 million of non-cash expenses. I don't understand why you've been complaining about our cash situation." The CFO turns the draft nancial statements over to you, the newest member of the accounting staff, along with, extracts from the notes to the financial statements. JEOPARDY INC. Consolidated Statement of Financial Position April 30, 2014, and 2013 (in $0005) 2014 2013 Assets Cash and 60-day treasury bills 3,265 3,739 Accounts receivable 23,744 18,399 Inventory 26,083 21,561 Income tax receivable 145 0 Prepaid expenses 1,402 1,613 54,639 45,312 Investments (Note 1) 5,960 6,962 Property, plant, and equipment (Note 2) 37,332 45,700 Deferred tax asset 4,875 2,245 Intangible assetsfranchises (Note 3) 4,391 1,911 Goodwill 0 12,737 $107,197 $114,867 Liabilities Current Bank overdraft (temporary $6,844 $6,280 Accounts payable and accrued (Note 4) 3,243 4,712 Current portion of long-term debt 1,800 1,200 11,887 12,192 Long-term debt (Note 5) 14,900 14,500 Shareholders' Equity Share capital (Note 6) 79,257 62,965 Retained earnings 1,153 25,210 80,410 88,175 $107,197 $114,867