Problem
Tamarisk Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.
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TAMARISK COMPANY
BALANCE SHEET
FOR THE YEAR ENDED 2017
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Current assets
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Cash
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$231,500
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Accounts receivable (net)
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341,500
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Inventory (lower-of-average-cost-or-market)
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402,500
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Equity investments (trading)-at cost (fair value $121,500)
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141,500
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Property, plant, and equipment
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Buildings (net)
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571,500
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Equipment (net)
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161,500
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Land held for future use
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176,500
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Intangible assets
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Goodwill
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81,500
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Cash surrender value of life insurance
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91,500
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Prepaid expenses
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13,500
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Current liabilities
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Accounts payable
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136,500
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Notes payable (due next year)
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126,500
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Pension obligation
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83,500
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Rent payable
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50,500
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Premium on bonds payable
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54,500
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Long-term liabilities
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Bonds payable
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501,500
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Stockholders' equity
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Common stock, $1.00 par, authorized 400,000 shares, issued 291,500
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291,500
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Additional paid-in capital
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161,500
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Retained earnings
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?
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Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $161,500 and for the equipment, $106,500. The allowance for doubtful accounts has a balance of $18,500. The pension obligation is considered a long-term liability.