Solution-Evaluate the balance sheet presented

Evaluate the balance sheet presented

Reference no: EM131763652

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.

Reference no: EM131763652

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Evaluate the balance sheet presented

Reference no: EM131763652

Reference no: EM131763652

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