(Reconstructing the ending balance sheet using the beginning balance sheet and the cash flow statement, LO 3, 4) Use the balance sheet as of May 31, 2003 and the cash flow statement for the year ended May 31, 2004 that are shown below for Balzac Ltd. to prepare Balzac Ltd’s balance sheet as of May 31, 2004.

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Balzac Ltd. Balance Sheet as of May 31, 2003 Assets Liabilities and shareholders' equity Current assets Current liabilities Cash $ 22,000 Accounts payable $ 75,000 Accounts receivable 60,000 Accrued liabilities Inventory 110,000 Interest payable 10,000 5,000 Prepaids 10,000 Taxes payable 11,000 Total current assets 202,000 Total current liabilities 101,000 Total assets Land Furniture and fixtures Accumulated amortization 300,000 Capital stock (80,000) Retained earnings Total liabilities and $522,000 shareholders' equity 100,000 Long-term loan 99,000 200,000 122,000 $522,000