E5-5 Bruno Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.

  

Current assets    

Cash$260,000 

Accounts receivable (net)340,000   

Inventories at lower of average cost or market401,000    

Trading securities-at cost (fair value $120,000)140,000 

Property, plant, and equipment     

Building (net)570,000

Office equipment (net)160,000    

Land held for future use175,000

Intangible assets     

Goodwill80,000    

Cash surrender value of life insurance90,000    

Prepaid expenses12,000 Current liabilities       

Accounts payable135,000    

Notes payable (due next year)125,000    

Pension obligation82,000    

Rent payable49,000    

Premium on bonds payable53,000 

Long-term liabilities     

Bonds payable500,000 

Stockholders' equity     Common stock, $1.00 par, authorized        400,000 shares, issued 290,000290,000    Additional paid-in capital180,000    Retained earnings?