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

Uhura Company

Balance Sheet

For the Year Ended 2008

Current assets

Cash ………………….$230,000

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 par, authorized

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

Additional paid-in capital …………… 160,000

Retained earnings …………….. ?



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