Chapter 3 Problems: 3-5

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

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