PROBLEM 1

A comparative balance sheet for Shabbona Corporation is presented below:

Dec-31
Assets 2017 2018
Cash $ 73,000 $ 22,000
Accounts Receivable 82,000 66,000
Inventory 180,000 189,000
Land 71,000 110,000
Equipment 260,000 200,000
Accumulated depreciation-equipment -69,000 -42,000
Total $ 597,000 $ 545,000
Liabilities and Stockholders' Equity
Accounts payable $ 34,000 $ 47,000
Bonds payable 150,000 200,000
Common stock($1 par) 214,000
Retained earnings 199,000
Total $ 597,000