PLEASE SHOW WORKING

Study the following Balance Sheet for Classic Cereals Co. Ltd. for the year 2004 and answer questions 35 through 39. You are required to show how you obtain your answer. CLASSIC CEREALS CO. LTD. Balance Sheet as at 31" March, 2004 Assets Property, plant and equipment Land 40,000 Building and improvements 200,000 Less: Accumulated depreciation 90,000 110,000 Equipment and vehicles 120,000 Less: Accumulated depreciation 80,000 40,000 Furniture and fixtures 26,000 Less: Accumulated depreciation 10,000 16.000 Total property, plant and equipment Intangible assets Goodwill 20,000 Research and development 80,000 Total intangible assets 206,000 100,000 Current assets Cash Accounts receivable Notes receivable Prepaid expenses Inventory 15,000 200,000 50,000 35,000 300,000 600,000 906,000 Total assets Liabilities and Stockholder's Equity Stockholder's Equity Common stock (1,000 shares) Retained earnings Total stockholder's equity 100,000 193.000 293,000 Liabilities Accounts payable Notes payable (due December, 2004) Accrued taxes Accrued salaries 40,000 8,000 150,000 90,000 288,000 Notes payable (due March, 2008) Bonds payable (due December, 2014) 35,000 290,000 Total liabilities Total liabilities & stockholder's equity 325.000 613,000 906,000