Bruno Corp. has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in order to obtain additional funds for expansion:

Instructions
(a) Prepare a revised statement of financial position using the available information. Assume that the bank overdraft relates to a bank account held at a different bank than the account with the cash balance. Assume that the accumulated depreciation balance for the buildings is $ 160,000 and that the accumulated depreciation balance for the equipment is $105,000. The allowance for doubtful accounts has a balance of $ 17,000. T he pension obligation is considered a long-term liability.
*(b) 'What effect, if any, does the classification of the bank overdraft have on the working capital and current ratio of Bruno Corp.? 'What is the likely reason that the bank overdraft was given that particular classification?

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BRUNO CORP Statement of Financial Position For the Year Ended December 31, 2014 Current assets Cash (net of bank overdraft of $30,000) Accounts receivable (net) Inventory at the lower of cost and net realizable value FV-NI investments (at cost-fair value $120,000) $260,000 340,000 401,000 140,000 Property, plant, and equipment Building (net) Equipment (net) Land held for future use 570,000 160,000 175,000 Intangible assets Goodwill Investment in bonds to be held until maturity, at amortized cost Prepaid expenses 80,000 90,000 12,000 Current liabilities Accounts payable Notes payable (due next year) Pension obligation Rent payable Premium on bonds payable 195,000 125,000 82,000 49,000 53,000 Long-term liabilities Bonds payable 500,000 Shareholders' equity Common shares, unlimited authorized, 290,000 issued Contributed surplus Retained earnings 290,000 180,000