The preliminary draft of the balance sheet at the end of the current fiscal year for Eagle Industries follows. The statement will be incorporated into the annual report to stockholders and will present the dollar amounts at the end of both the current and prior years on a comparative basis. The accounts in the statement are properly classified, and the dollar amounts have been determined in accordance with generally accepted accounting principles. The company does not intend to provide any more detailed information in the body of the statement.

Required:
Identify the accounts that most likely would require further disclosure in the notes to the financial statements and describe what information would have to be disclosed in those notes by Eagle Industries before the statement can be included as part of the annual report for presentation to itsstockholders.

Transcribed Image Text:

Eagle Industries Balance Sheet as of December 31, 2014 ($ in millions) Assets Current assets Cash Short-term investments Accounts receivable (net) Inventories Prepayments and other $ 13.5 6.8 113.0 228.0 4.8 366.0 55.2 787.1 S1,208.3 Total current assets Investments in equity securities (available for sale) Property, plant, and equipment (net) Total assets Liabilities and Stockholders' Equity Current liabilities Current maturities on long-term debt Notes payable Accounts payable Accrued taxes Accrued interest Other $36.5 79.5 139.8 42.3 11.0 4.4 313.4 477.2 790.5 Total current liabilities Long-term liabilities Total liabilities Stockholders' equity Preferred stock Common stock Additional paid-in capital on common stock Retained earnings appropriate Retained earnings unappropriatıe 30.0 77.0 65.4 40.8 204.6 417.8 S1,208.3 Total stockholders' equity Total liabilities and stockholders' equity