The financial statement attachment was prepared by the employees of your client, Leacock Ltd. The statement is unaccompanied by notes.

Leacock Ltd.

Balance Sheet

As of November 30, 2019

Instructions (Analysis and Recommendations)

Indicate the deficiencies, if any, in the balance sheet above in regard to form, terminology, descriptions, content and the like. Note: smith lee is your client contact for the purposes of this case should you have questions about any of the above numbers.

Following the case format, please give an introduction, identify three key issues (can be point form), and give your analysis and recommendations regarding the above Balance Sheet. Your submission should include an Excel spreadsheet with a corrected balance sheet.

CurrentassetsCashAccountsreceivable(lessallowanceof$30,000fordoubtfulaccounts)InventoriesLess:CurrentliabilitiesAccountspayableAccruedpayrollAccruedinterestonmortgagenoteEstimatedtaxespayableNetworkingcapital$100,000419,9001,954,000306,40028,26012,00066,000$2,473,900412,6602,061,240 Property, plant, and equipment (at cost)