Maurice Tutor
$15/per page/Negotiable
CA5-4 (Critique of Balance Sheet Format and Content) Presented below and on the next page is the balance sheet of Rasheed Brothers Corporation (000s omitted).
|
Current assets |
$26,000 |
 |
|
Cash |
18,000 |
 |
|
Marketable securities |
25,000 |
 |
|
Accounts receivable |
20,000 |
 |
|
Inventory |
4,000 |
 |
|
Supplies |
20,000 |
$113,000 |
|
Stock investment in subsidiary company |
||
|
Investments |
25,000 |
|
|
Treasury stock |
 | |
|
Property, plant, and equipment |
91,000 |
 |
|
Buildings and land |
31,000 |
60,000 |
|
Less: Reserve for depreciation |
||
|
Other assets |
19,000 |
|
|
Cash surrender value of life insurance |
$217,000 |
|
|
Total assets |
 | |
|
Liabilities and Stockholders’ |
||
|
Current liabilities |
$22,000 |
 |
|
Accounts payable |
15,000 |
 |
|
Reserve for income taxes |
1 |
$ 37,001 |
|
Customers’ accounts with credit balances |
||
|
Deferred credits |
2,000 |
 |
|
Unamortized premium on bonds payable |
||
|
Long-term liabilities |
||
|
Bonds payable |
60,000 |
 |
|
Total liabilities |
99,001 |
 |
|
Common stock |
 | |
|
Common stock, par $5 |
85,000 |
 |
|
Earned surplus |
24,999 |
 |
|
Cash dividends declared |
8,000 |
117,999 |
|
Total liabilities and stockholders’ equity |
$217,000 |
|
Instructions
Evaluate the balance sheet presented. State briefly the proper treatment of any item criticized.