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Question 5 of 5 Current Attempt in Progress The statement of financial position of Whispering Winds Corporation follows for the current year, 202 WHISPERING WINDS

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Question 5 of 5 Current Attempt in Progress The statement of financial position of Whispering Winds Corporation follows for the current year, 202 WHISPERING WINDS CORPORATION Statement of Financial Position December 31, 2020 Current assets $509,250 Current liabilities $399,000 Investments 672,000 Long-term liabilities 1,008,000 Property, plant, and equipment 1,806,000 Shareholders' equity 1,858,500 Intangible assets 278,250 $3,265,500 $3,265,500 The following additional information is available: 1. The current assets section includes the following: cash $157,500; accounts receivable $178,500, less $10,500 allowance for doubtful accounts; inventory $189,000; and unearned revenue $5,250. The cash balance is composed of $199.500, less a bank overdraft of $42.000 (at a separate financial institution). Inventory is stated at the lower of FIFO cost and net realizable value. 2. The investments section includes the following: note receivable from a related company, due in 2026, $42.000; FV-NI investments in shares $84.000 (fair value $84,000); FV-OCI investments in shares $131,250 (fair value $162.750): bond sinking fund $262.500; and patents $120.750, net of accumulated amortization. 3. Property, Plant, and Equipment include buildings $1,092,000, less accumulated depreciation $378,000; equipment $472,500, less accumulated depreciation $189,000; land $525,000; and land held for future use $283,500. 4. Intangible Assets include franchise, net of accumulated amortization, $278.250. 5. Current liabilities include the following: accounts payable $147.000; notes payable, short-term $84,000, long-term $126,000; and income tax payable $42.000. 6. Long-term liabilities are composed solely of 7% bonds payable issued at a discount, due in 2028. 7. Shareholders' equity has 70,000 preferred shares (200,000 authorized), which were issued for $472,500, and 105,000 common shares (unlimited number authorized), which were issued at an average price of $10 per share. In addition, the corporation has retained earnings of $304,500 and accumulated daher comprehensive income of $31.500. (a) Prepare a statement of financial position in good form. (Adjust the amounts in each SFP classification based on the additiona information.) (List Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.) WHISPERING WINDS CORPORATION Statement of Financial Position

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