Prime Essentials Ltd. is a small private corporation. The owner plans to approach the bank for an additional loan or a line of credit to facilitate expansion. The company bookkeeper, after discussion with the owner of the company, has prepared the following draft SFP for the fiscal year ended 30 September 20X3, the companys first full year of operations:

PRIME ESSENTIALS LTD. Statement of Financial Position
Year ended 30 September 20X3
Assets
Cash in the bank	$ 12,000
Patent	30,000
Goodwill	50,000
Equipment	120,000
Amounts owed by customers	32,000
Stocks and bonds owned by the company	10,000
Total	$254,000
Financing Sources for Assets
Amounts owed to suppliers	28,000
Amount owed to owner for automobile expenses	6,000
Amount owed to owners brother-in-law	20,000
Amount owed to bank	26,000
Earnings accumulated in the business	27,000
Shares paid for by owner	60,000
Cash flow from used-up portion of equipment	24,000
Increases in value	63,000
Total	$254,000

The bookkeeper has provided some notes on the amounts included in the draft SFP:

The owner invested $60,000 of his own money to start the business.

The patent was purchased from the owners brother-in-law for $17,000. The owner believes that the patent could easily be sold for $30,000, and probably more.

The equipment is being depreciated at the same rate as allowed for income tax. Depreciation represents a source of financing for the company because it is added back to net income and increases the operating cash flow.

The owner uses his personal automobile for occasional business errands. He estimates that the company owes him $6,000 for his use of the car.

Because the business has been profitable, the owner estimates that he could sell the company at a $50,000 premium, thereby almost doubling his initial investment after only one year.

The bank gave a five-year loan to the company, with the provision that the company had to maintain a 25% compensating balance in its cash account until the loan is repaid.

The company holds publicly traded shares in other companies. The value of these securities was $10,000 when the owners brother-in-law gave them to the company as a loan on 1 April 20X3. On 30 September 20X3, their market value was $14,000. The company is free to sell the securities, but $10,000 plus one-half of any proceeds above $10,000 must be passed on to the brother-in-law. The brother-in-law also lent $10,000 cash to the company, repayable on demand.

One of the customers is a bit unsteady, financially. That customer owes $3,000.

Required:

Redraft the SFP. Provide an explanation for each change you make. Explain any note disclosures you think are needed.