The following is the statement of financial position of Rasheed Brothers Corporation (amounts in thousands). Instructions Evaluate
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Instructions
Evaluate the statement of financial position presented. State briefly the proper treatment of any item criticized.
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Rasheed Brothers Corporation Statement of Financial Position December 31, 2019 Assets Current assets $26,000 Cash Short-term investments 18,000 Accounts receivable 25,000 Inventory 20,000 Supplies 4,000 Investment in associated company 20,000 $113,000 Investments Treasury shares 25,000 Property, plant, and equipment Buildings and land 91,000 Less: Accumulated depreciation 31,000 60,000 Other assets Cash restricted for plant expansion 19,000 Total assets $217,000 Liabilities and Equity Curent liabilities Accounts payable $22,000 Income taxes payable 15,000 $ 37,000 Deferred credits Unrealized gains on non-trading equity investments 2,000 Non-current liabilities Bonds payable 60,000 Total liabilities 99,000 Equity Share capital-ordinary, par $5 Retained earnings 85,000 25,000 8,000 118,000 Cash dividends dedared Total liabilities and equity $217,000
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Criticisms of the statement of financial position of the Rasheed Brothers Corporation are as follows 1 The basis for the valuation of shortterm invest...View the full answer
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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