The most recent SFP of Black-stone Tire Corporation, a private corporation, appears below:

Required:
1. List and explain in writing your criticisms of the above statement.
2. Prepare a complete SFP as far as possible, using appropriate format, captions, and terminology.

Transcribed Image Text:

Blackstone Tire Corporation SFP For the year ended 31 December 20x5 Short-term investments Accounts receivable Merchandise Supplies Shares of Wilmont Co. (not a controlling interest) 23,000 10,000 15,000 31,000 5,000 17,000 $101,000 Investments Loan to shareholder 82,500 Tangible: Building and land ($10,000) $86,000 Less: reserve for depreciation Less: reserve for depreciation Prepaid expenses 40,000 46,000 Equipment $20,000 15,0005,0 51,000 Total $239,500 Debt and capital Current Accounts payable Reserve for future, deferred income tax Customers' accounts receivable with credit balance $16,000 17,000 100 33,100 Fixed (interest paid at year-end): Bonds payable, 8.5%, due 20X9 Mortgage, 11% 45,000 12,000 57,000 Reserve for bad debts Capital Preferred shares, authorized and outstanding, 6,000 shares Common shares, authorized 10,000 shares Earned surplus Donated capital 50,000 67,000 22,500 9,000 148,500 $239,500