Presented below is the balance sheet of Sameed Brothers Corporation (000s omitted).

Instructions
Evaluate the balance sheet presented. State briefly the proper treatment of any itemcriticized.

Transcribed Image Text:

SAMEED BROTHERS CORPORATION BALANCE SHEET DECEMBER 31, 2014 Current assets Marketable securities Accounts receivable Inventory Supplies Stock investment in subsidiary company $26,000 18,000 25,000 20,000 4,000 20,000 $113,000 Investments Treasury stock 25,000 Property, plant, and equipment Buildings and land Less: Reserve for depreciation 2 91,000 31,000 Other assets Cash surrender value of life insurance 19,000 $217,000 Total assets Liabilities and Stockholders E Current liabilities Accounts payable Reserve for income taxes Customers' accounts with credit balances $22,000 15,000 37,001 2,000 60,000 Deferred credits Unamortized premium on bonds payable Long-term liabilities Bonds payable Total liabilities 99,001 Common stock Common stock, par $5 Earned surplus Cash dividends declared 85,000 24,999 8,000 117,999 Total liabilities and stockholders' equity