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WRITING(Critique of Balance Sheet Format and Content)The following is the balance sheet of Sameed Brothers Corporation (000s omitted). SAMEED BROTHERS CORPORATION BalanceSheet December31, 2017 Assets
WRITING(Critique of Balance Sheet Format and Content)The following is the balance sheet of Sameed Brothers Corporation (000s omitted).
SAMEED BROTHERS CORPORATION BalanceSheet December31, 2017 | ||
Assets | ||
Current assets | ||
Cash | $26,000 | |
Marketable securities | 18,000 | |
Accounts receivable | 25,000 | |
Inventory | 20,000 | |
Supplies | 4,000 | |
Stock investment in subsidiary company | 20,000 | $113,000 |
Investments | ||
Treasury stock | 25,000 | |
Property, plant, and equipment | ||
Buildings and land | 91,000 | |
Less: Reserve for depreciation | 31,000 | 60,000 |
Other assets | ||
Cash surrender value of life insurance | 19,000 | |
Total assets | $217,000 | |
Liabilities and Stockholders Equity | ||
Current liabilities | ||
Accounts payable | $22,000 | |
Reserve for income taxes | 15,000 | |
Customers accounts with credit balances | 1 | $ 37,001 |
Deferred credits | ||
Unamortized premium on bonds payable | 2,000 | |
Long-term liabilities | ||
Bonds payable | 60,000 | |
Total liabilities | 99,001 | |
Common stock | ||
Common stock, par $5 | 85,000 | |
Earned surplus | 24,999 | |
Cash dividends declared | 8,000 | 117,999 |
Total liabilities and stockholders equity | $217,000 |
Evaluate the balance sheet presented. State briefly the proper treatment of any item criticized.
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