Presented below and on the next page is the balance sheet of Rasheed Brothers Corporation (000s omitted).

InstructionsEvaluate the balance sheet presented. State briefly the proper treatment of any itemcriticized.

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RASHEED BROTHERS CORPORATION BALANCE SHEET DECEMBER 31, 2012 Assets Current assets $26,000 Cash Marketable securities 18,000 25,000 20,000 4,000 Accounts receivable Inventory Supplies Stock investment in subsidiary company 20,000 $113,000 Investments Treasury stock Property, plant, and equipment Buildings and land Less: Reserve for depreciation 25,000 91,000 31,000 60,000 Other assets Cash surrender value of life insurance 19,000 Total assets $217.000 Liabilities and Stockholders' Equity Current liabilities Accounts payable $22,000 15,000 1. Reserve for income taxes $ 37,001 Customers' accounts with credit balances Deferred credits Unamortized premium on bonds payable Long-term liabilities Bonds payable 2,000 60,000 Total liabilities 99.001 Common stock Common stock, par $5 Earned surplus 85,000 24,999 8,000 Cash dividends declared 117,999 $217,000 Total liabilities and stockholders' equity