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Rubber Industries: Evaluate the Balance sheet; explain proper treatment of items The following is the balance sheet of Rubber Industries:

RUBBER INDUSTRIES

Balance Sheet For the Year Ended December 31, 2008

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 $123,000

Accounts payable 40,000

Wages payable 10,000

Total liabilities $173,000

Stockholders' equity:

Common stock ($20 par, 20,000 shares authorized, 6,000 shares outstanding) 120,000

Retained earnings 50,000 Redeemable preferred stock 20,000

Total liabilities and stockholders' equity $363,000

Indicate your criticisms of the balance sheet and briefly explain the proper treatment of any item criticized.