Problem 3 - Making financial disclosures (LO 5-3) The preliminary draft of the balance sheet at the end of the current fiscal year for Eagle Industries follows. The statement will be incorporated into the annual report to stockholders and will present the dollar amounts at the end of both the current and prior years on a comparative basis. The accounts in the statement are properly classified, and the dollar amounts have been determined in accordance with generally accepted accounting principles. The company does not intend to provide any more detailed information in the body of the statement. Balance Sheet as of December 31, 20X1 ($ in millions) Assets Current assets Cash $ 13.4 Short-term investments 6.8 Accounts receivable (net) 113.0 Inventories 228.0 Prepayments and other 4.8 Total current assets 366.0 Investments in equity securities (available for sale) 55.2 Property, plant, and equipment (net) 787.1 Total assets $ 1,208.3 Liabilities and Stockholders Equity Current liabilities Current maturities on long-term debt $ 36.3 Notes payable 79.5 Accounts payable 139.8 Accrued taxes 42.3 Accrued interest 11.0 Other 4.4 Total current liabilities 313.3 Long-term liabilities 477.2 Total liabilities 790.5 Stockholders equity Preferred stock 30.0 Common stock 77.0 Additional paid-in capital on common stock 65.4 Retained earningsappropriated 40.8 Retained earningsunappropriated 204.6 Total stockholders equity 417.8 Total liabilities and stockholders equity $ 1,208.3

Required: Identify the accounts that most likely would require further disclosure in the notes to the financial statements and describe what information would have to be disclosed in those notes by Eagle Industries before the statement can be included as part of the annual report for presentation to its stockholders.