(Reconstructing the beginning balance sheet using the ending balance sheet and the cash flow statement, LO 3, 4) Use the balance sheet as of October 31, 2006 and the cash flow statement for the year ended October 31, 2006 that are shown below to prepare Factory Corp.’s balance sheet as of November 1, 2005.

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Factory Corp. Balance Sheet as of October 31, 2006 Assets Liabilities and shareholders' equity Current assets Current liabilities Cash $ 100,000 Accounts payable $ 375,000 Accounts receivable 210,000 Wages payable 45,000 Inventory Total current assets Land Furniture and fixtures Accumulated amortization Total assets 510,000 820,000 Long-term loan 500,000 Capital stock 1,750,000 Retained earnings (475,000) Total liabilities and $2,595,000 shareholders' equity Total current liabilities 420,000 912,500 462,500 800,000 $2,595,000