Rice Corporation is negotiating a loan for expansion purposes and the bank requires financial statements. Before closing the accounting records for the year ended December 31, 2024, Rices controller prepared the following financial statements: RICE CORPORATION Balance Sheet At December 31, 2024 ($ in thousands) Assets Cash $ 275 Investments 78 Accounts receivable 487 Inventory 425 Allowance for uncollectible accounts (50) Property and equipment (net) 160 Total assets $1,375 Liabilities and Shareholders Equity Accounts payable and accrued liabilities $ 420 Notes payable 200 Common stock 260 Retained earnings 495 Total liabilities and shareholders equity $1,375 RICE CORPORATION Income Statement For the Year Ended December 31, 2024 ($ in thousands) Sales revenue $1,580 Expenses: Cost of goods sold $755 Selling and administrative expense 385 Miscellaneous expense 129 Income tax expense 100 Total expenses 1,369 Net income $ 211 Additional Information: The companys common stock is traded on an organized stock exchange. The investment portfolio consists of short-term investments valued at $57,000. The remaining investments will not be sold until the year 2026. Notes payable consist of two notes: Note 1: $80,000 face value dated September 30, 2024. Principal and interest at 10% are due on September 30, 2025. Note 2: $120,000 face value dated April 30, 2024. Principal is due in two equal installments of $60,000 plus interest on the unpaid balance. The two payments are scheduled for April 30, 2025, and April 30, 2026. Interest on both loans has been correctly accrued and is included in accrued liabilities on the balance sheet and selling and administrative expense in the income statement. Included in miscellaneous expense is loss from discontinued operations of $90,000 (net of tax). page 230 Required: Identify the deficiencies in the presentation of the statements prepared by the companys controller. Do not prepare corrected statements.