Presented below is the balance sheet of Rubber Industries.

RUBBER INDUSTRIES Balance Sheet For the Year Ended December 31, 2000 Assets Current assets:

Cash $50,000 Marketable equity securities 19,000 Accounts receivable, net 60,000 Inventory 30,000 Treasury stock 20,000 Total current assets 179,000 Plant assets:

Land and buildings, net 160,000 Investments:

Short-term U.S. notes 20,000 Other assets:

Supplies 4,000 Total assets $363,000 Liabilities and Stockholders’ Equity Liabilities:

Bonds payable $120,000 Accounts payable 40,000 Wages payable 10,000 Premium on bonds payable 3,000 Total liabilities 173,000 Stockholders’ equity:

Common stock ($20 par, 20,000 shares authorized, 6,000 shares outstanding) 120,000 Retained earnings 30,000 Minority interest 20,000 Redeemable preferred stock 20,000 Total liabilities and stockholders’ equity $363,000 Required Indicate your criticisms of the balance sheet and briefly explain the proper treatment of any item criticized.