balance sheet 460772

Bruno Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.

BRUNO COMPANY

Balance Sheet

December 31, 2010

Current assets

Cash $260,000

Accounts receivable (net) 340,000

Inventories at lower of average cost or market 401,000

Trading securities-at cost (fair value $120,000) 140,000

Property, plant, and equipment

Building (net) 570,000

Office equipment (net) 160,000

Land held for future use 175,000

Intangible assets

Goodwill 80,000

Cash surrender value of life insurance 90,000

Prepaid expenses 12,000

Current liabilities

Accounts payable 135,000

Notes payable (due next year) 125,000

Pension obligation 82,000

Rent payable 49,000

Premium on bonds payable 53,000

Long-term liabilities

Bonds payable 500,000

Stockholders’ equity

Common stock, $1.00 par, authorized

400,000 shares, issued 290,000 290,000

Additional paid-in capital 180,000

Retained earnings ?

Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $160,000 and for the office equipment, $105,000. The allowance for doubtful accounts has a balance of $17,000. The pension obligation is considered a long-term liability. (List current assets in order of liquidity. List multiple entries for Property, plant and equipment, Long-term investments and Current liabilities from largest to smallest amounts, e.g. 10, 5, 3.)