CA5-3 (Identifying Balance Sheet Deficiencies) The assets of Fonzarelli Corporation are presented on the next page (000s omitted). FONZARELLI CORPORATION Balance Sheet (partial) December 31, 2010 Assets Current assets Cash $ 100,000 Unclaimed payroll checks 27,500 Trading securities (fair value $30,000) at cost 37,000 Accounts receivable (less bad debt reserve) 75,000 Inventoriesat lower of cost (determined by the next-in, first-out method) or market 240,000 Total current assets 479,500 Tangible assets Land (less accumulated depreciation) 80,000 Buildings and equipment $800,000 Less: Accumulated depreciation 250,000 550,000 Net tangible assets 630,000 Long-term investments Stocks and bonds 100,000 Treasury stock 70,000 Total long-term investments 170,000 Other assets Discount on bonds payable 19,400 Sinking fund 975,000 Total other assets 994,400 Total assets $2,273,900 Instructions Indicate the deficiencies, if any, in the foregoing presentation of Fonzarelli Corporation's assets