Reference no: EM132477270

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 land91,000

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.