Exercise 5-4 a

Flint 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:

FLINT CORP.

Statement of Financial Position

For the Year Ended December 31, 2020

Current assets

Cash (net of bank overdraft of $40,000)

$450,000Accounts receivable (net)

505,000Inventory at the lower of cost and net realizable value

511,000FV-NI investments (at costfair value $190,000)

340,000Property, plant, and equipment

Buildings (net)

590,000Equipment (net)

190,000Land held for future use

265,000Intangible assets

Goodwill

100,000Investment in bonds to collect cash flows, at amortized cost

101,000Prepaid expenses

19,000Current liabilities

Accounts payable

365,000Notes payable (due next year)

295,000Pension obligation

98,000Rent payable

65,000Long-term liabilities

Bonds payable

681,000Shareholders' equity

Common shares, unlimited authorized, 380,000 issued

380,000Contributed surplus

210,000Retained earnings

?

(a)

Prepare revised statement of financial position using the available information. Assume that the bank overdraft relates to a bank account held at a different bank from the account with the cash balance. Assume that the accumulated depreciation balance for the buildings is $210,000 and that the accumulated depreciation balance for the equipment is $145,000. The allowance for doubtful accounts has a balance of $27,000. The pension obligation is considered a long-term liability. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)