The following is the balance sheet of Rubber Industries:
RUBBER INDUSTRIES
Balance Sheet
For the Year Ended December 31, 2010
Assets
Current assets:
Cash .........................................................$ 50,000
Marketable equity securities ............................. 19,000
Accounts receivable, net ................................. 60,000
Inventory ................................................... 30,000
Treasury stock ............................................. 20,000
Total current assets ....................................... $ 179,000
Plant assets:
Land and buildings, net ................................. 160,000
Investments:
Short-term U.S. notes .................................... 20,000
Other assets:
Supplies ................................................... 4,000
Total assets ................................................ $ 363,000
Liabilities and Stockholders' Equity
Liabilities:
Bonds payable ............................................$123,000
Accounts payable ......................................... 40,000
Wages payable ............................................ 10,000
Total liabilities ............................................$173,000
Stockholders' equity:
Common stock ($20 par, 20,000 shares
authorized, 6,000 shares outstanding) ................ 120,000
Retained earnings ........................................ 50,000
Redeemable preferred stock ............................ 20,000
Total liabilities and stockholders' equity ..............$363,000
Required
Indicate your criticisms of the balance sheet and briefly explain the proper treatment of any item criticized.