(Critique of Balance Sheet Format and Content) Presented below is the balance sheet of Sameed Brothers Corporation (000s omitted).

Instructions

Evaluate the balance sheet presented. State briefly the proper treatment of any item criticized.

RASHEED BROTHERS CORPORATION STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2010 Assets Current assets Cash Short-term investments Accounts receivable Merchandise inventory Supplies Inventory Investment in associated company $26,000 18,000 25,000 20,000 4,000 20,000 $113,000 Investments Treasury shares 25,000 Property, plant, and equipment Buildings and land Less: Accumulated depreciation 91,000 31,000 60,000 Other assets 19,000 $217,000 Cash restricted for plant expansion Total assets Concepts f Liabilities and Equity Current liabilities $22,000 15,000 Accounts payable Income taxes payable Unrealized gains on non-trading equity investments Bonds payable $37,000 2,000 60,000 Deferred credits Non-current liabilities Total liabilities 99,000 Equity Share capital-ordinary, par $5 Retained earnings Cash dividends declared 85,000 24,999 8,000 117,999 $217,000 Total liabilities and equity