(Identifying Balance Sheet Deficiencies) The assets of Fonzarelli Corporation are presented below (000s omitted).

Instructions Indicate the deficiencies, if any, in the foregoing presentation of Fonzarelli Corporation’s assets.

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FONZARELLI CORPORATION BALANCE SHEET (PARTIAL) DECEMBER 31, 2017 Assets Current assets Cash Unclaimed payroll checks Debt investments (trading) (fair value $30,000) at cost Accounts receivable (less bad debt reserve) Inventory at lower-of-cost (determined by the next-in, first-out method)-or-net realizable value Total current assets Tangible assets Land (less accumulated depreciation) Buildings and equipment Less: Accumulated depreciation Net tangible assets Long-term investments Stocks and bonds Treasury stock Total long-term investments Other assets Discount on bonds payable Sinking fund Total other assets Total assets $ 100,000 27,500 37,000 75,000 240,000 479,500 80,000 $800,000 250,000 550,000 630,000 100,000 70,000 170,000 19,400 975,000 994,400 $2,273,900