Cheyenne Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. CHEYENNE COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020

Current assets

Cash $237,000
Accounts receivable (net) 347,000
Inventory (lower-of-average-cost-or-market) 408,000
Equity investments (marketable)-at cost (fair value $127,000) 147,000
Property, plant, and equipment Buildings (net) 577,000
Equipment (net) 167,000
Land held for future use 182,000
Intangible assets Goodwill 87,000
Cash surrender value of life insurance 97,000
Prepaid expenses 19,000
Current liabilities Accounts payable 142,000
Notes payable (due next year) 132,000
Pension obligation 89,000
Rent payable 56,000
Premium on bonds payable 60,000
Long-term liabilities Bonds payable 507,000
Stockholders’ equity Common stock, $1.00 par, authorized 400,000 shares, issued 297,000 297,000
Additional paid-in capital 167,000 Retained earnings.

Required:
Prepare a revised balance sheet given the available information.

Cheyenne Company

CHEYENNE COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020

ASSETS

Current assets :

Cash                                     $237,000

Accounts receivable (net)     347,000

Inventory (LCM)                     408,000

Marketable Investments        127,000

Cash surrender

value of life insurance           97,000

Prepaid expenses                   19,000

Total current assets        $1,235,000       $1,235,000

Property, plant, and

equipment Buildings (net)   577,000

Equipment (net)                     167,000

Land held for future use      182,000

Intangible assets Goodwill    87,000

Total long-term assets    $1,013,000       $1,013,000

Total assets                                             $2,248,000

LIABILITIES & EQUITY

Current liabilities:

Accounts payable                142,000

Notes payable (short-term) 132,000

Pension obligation                89,000

Rent payable                         56,000

Premium on bonds payable 60,000

Total current liabilities      $479,000       $479,000

Long-term liabilities

Bonds payable                    507,000         $507,000

Total liabilities                                           $986,000

Stockholders’ equity

Common stock, $1.00 par,

authorized 400,000 shares,

issued 297,000                  297,000

Additional paid-in capital    167,000

Retained earnings              798,000

Total Equity                    $1,262,000     $1,262,000

Total liabilities & Stockholders' equity $2,248,000

Explanation:

CHEYENNE COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020

Current assets

Cash                                     $237,000

Accounts receivable (net)     347,000

Inventory (LCM)                     408,000

Marketable Investments        127,000

Cash surrender

value of life insurance           97,000

Prepaid expenses                   19,000

Property, plant, and

equipment Buildings (net)   577,000

Equipment (net)                     167,000

Land held for future use      182,000

Intangible assets Goodwill    87,000

Current liabilities

Accounts payable                142,000

Notes payable (short-term) 132,000

Pension obligation                89,000

Rent payable                         56,000

Premium on bonds payable 60,000

Long-term liabilities

Bonds payable                    507,000

Stockholders’ equity

Common stock, $1.00 par,

authorized 400,000 shares,

issued 297,000                  297,000

Additional paid-in capital    167,000

Retained earnings               ?

Total assets - Liabilities  = Total Equity

= 2,248,000 - 986,000

= 1,262,000

Retained Earnings = Total Equity  - (Common Stock + APIC)

= 1,262,000 - (297,000 + 167,000)

= $798,000