(Preparation of Corrected Statement of Financial Position) Bruno Corp. has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in order to obtain additional funds for expansion:

Bruno Corp. Statement of Financial Position For the Year Ended December 31, 2020 Current assets Cash (net of bank overdraft of $30,000) $260,000 Accounts receivable (net) 340,000 Inventory at the lower of cost and net realizable value 401,000 FV-NI investments (at costfair value $120,000) 140,000 Property, plant, and equipment Buildings (net) 570,000 Equipment (net) 160,000 Land held for future use 175,000 Intangible assets Goodwill $ 80,000 Investment in bonds to collect cash flows, at amortized cost 90,000 Prepaid expenses 12,000 Current liabilities Accounts payable 195,000 Notes payable (due next year) 125,000 Pension obligation 82,000 Rent payable 49,000 Long-term liabilities Bonds payable 553,000 Shareholders' equity Common shares, unlimited authorized, 290,000 issued 290,000 Contributed surplus 180,000 Retained earnings ? Instructions a. Prepare a revised statement of financial position using the available information. Assume that the bank overdraft relates to a bank account held at a different bank from the account with the cash balance. Assume that the accumulated depreciation balance for the buildings is $160,000 and that the accumulated depreciation balance for the equipment is $105,000. The allowance for doubtful accounts has a balance of $17,000. The pension obligation is considered a long-term liability.

*b. What effect, if any, does the classification of the bank overdraft have on the working capital and current ratio of Bruno Corp.? What is the likely reason why the bank overdraft was given that particular classification?