P 3-5 The following is the balance sheet of Rubber Industries: RUBBER INDUSTRIES Balance Sheet For the Year Ended December 31, 2012 Assets Current assets: Cash Marketable equity securities Accounts receivable, net Inventory Treasury stock Total current assets Plant assets: Land and buildings, net Investments: Short-term U.S. notes Other assets: Supplies Total assets Liabilities and Stockholders' Equity Liabilities: Bonds payable Accounts payable Wages payable Total liabilities Stockholders' equity: Common stock ($20 par, 20,000 shares authorized, 6,000 shares outstanding) Retained earnings Redeemable preferred stock Total liabilities and stockholders' equity $ 50,000 19,000 60,000 30,000 20,000 $179,000 160,000 20,000 4,000 $363,000 $123,000 40,000 10,000 $173,000 120,000 50,000 20,000 $363,000 Required Indicate your criticisms of the balance sheet and briefly explain the proper treat- ment of any item criticized.