Reference no: EM132482998

The statement of financial position of Manion Corporation follows (in thousands):

Manion Corporation

Statement of Financial Position

December 31, 2020

AssetsCurrent assetsCash                   $26,000

Accounts receivable                           25,000

Inventory                                        20,000

Supplies                                          4,000

Investment in subsidiary company        38,000

                                                       $113,000

InvestmentsInvestments in shares         25,000

Property, plant, and equipmentBuildings and land 91,000

Less: Reserve for depreciation            31,000

                                                    60,000

Other assetsInvestment in bonds to be held to maturity (at cost)19,000

                                                  $217,000

Liabilities and shareholders' equityCurrent liabilitiesAccounts payable$22,000

Reserve for income taxes                            15,000

Customer accounts with credit balances1

                                                          $ 37,001

Long-term liabilitiesBonds payable               62,000

Total liabilities                                          99,001

Shareholders' equityCommon shares issued   85,000

Earned surplus and other accumulated surplus  24,999

Cash dividends declared                              8,000

                                                       117,999

                                                      $217,000

Instructions

Question 1: Evaluate the statement of financial position. Briefly describe the proper treatment of any item that you find incorrect. Assume the company follows IFRS.