WRITING (Critique of Balance Sheet Format and Content) The following is the balance sheet of Sameed Brothers Corporation (000s omitted).
SAMEED BROTHERS CORPORATION
Balance Sheet
December 31, 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
|
Instructions
Evaluate the balance sheet presented. State briefly the proper treatment of any item criticized.