You recently joined the internal auditing department of Marcus Clothing Corporation. As one of your first assignments, you are examining a balance sheet prepared by a staff accountant. Marcus Clothing Corporation Balance Sheet At December 31, 2013 Assets Current Assets: Cash $137,000 Accounts Receivable, net 80,000 Note Receiveable 53,000 Inventories 240,000 Investments 66,000 Total Current Assets 576,000 Other Assets: Land $200,000 Equipment, net 320,000 Prepaid expenses 27,000 Patent 22,000 Total other assets 569,000 Total assets $1,145,000 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $125,000 Salaries payable 32,000 Total Current Liablilites 157,000 Long-term liabilites: Note payable $100,000 Bonds payable 300,000 Interest payable 20,000 Total long-term liabilites 420,000 Shareholders' Equity: Common Stock 500,000 Retained earnings 68,000 Total shareholders' equity 568,000 Total liabilities and shareholders equity $1,145,000 In the course of your examination you uncover the following information pertaining to the balance sheet: 1. The company rents its facilities. The land that appears in the statement is being held for future sale. 2. The note receiveable is due in 2015. The balance os $53,000 includes $3,000 of accrued interest. The next interest payment is due July 2014. 3. The note payable is due in installments of $20,000 per year. Interest on both the notes and bonds is payable annually. 4. The company's investments consist of marketable equity securities of other corporations. Managment does not intend to liquidate any investments in the coming year. Required:: Identify and explain the deficiencies in the statement prepared by the company's accountant. Include in your answer items that require additional disclosure, either on the face of the statement of in a note.