P 3-6 The following is the balance sheet of McDonald Company: McDONALD COMPANY December 31, 2012 Assets Current assets: Cash (including $10,000 restricted for payment of note) $ 40,000 Marketable equity securities 20,000 Accounts receivable, less allowance for doubtful accounts of $12,000 70,000 Inventory 60,000 Total current assets $190,000 Plant assets: Land $ 40,000 Buildings, net 100,000 Equipment $80,000 Less: Accumulated depreciation 20,000 60,000 Patent 20,000 Organizational costs 15,000 235,000 Other assets: Prepaid insurance 5,000 Total assets $430,000 Liabilities and Stockholders Equity Current liabilities: Accounts payable $ 60,000 Wages payable 10,000 Notes payable, due July 1, 2014 20,000 Bonds payable, due December 2018 100,000 Total current liabilities $190,000 Dividends payable 4,000 Deferred tax liability, long term 30,000 Stockholders equity: Common stock ($10 par, 10,000 shares authorized, 5,000 shares outstanding) $ 50,000 Retained earnings 156,000 Total stockholders equity 206,000 Total liabilities and stockholders equity $430,000 Required Indicate your criticisms of the balance sheet and briefly explain the proper treatment of any item criticized.