Presented below and on the next page is the balance sheet of Rasheed Brothers Corporation (000s omitted).
Question:
Presented below and on the next page is the balance sheet of Rasheed Brothers Corporation (000s omitted).
InstructionsEvaluate the balance sheet presented. State briefly the proper treatment of any itemcriticized.
RASHEED BROTHERS CORPORATION BALANCE SHEET DECEMBER 31, 2012 Assets Current assets $26,000 Cash Marketable securities 18,000 25,000 20,000 4,000 Accounts receivable Inventory Supplies Stock investment in subsidiary company 20,000 $113,000 Investments Treasury stock Property, plant, and equipment Buildings and land Less: Reserve for depreciation 25,000 91,000 31,000 60,000 Other assets Cash surrender value of life insurance 19,000 Total assets $217.000 Liabilities and Stockholders' Equity Current liabilities Accounts payable $22,000 15,000 1. Reserve for income taxes $ 37,001 Customers' accounts with credit balances Deferred credits Unamortized premium on bonds payable Long-term liabilities Bonds payable 2,000 60,000 Total liabilities 99.001 Common stock Common stock, par $5 Earned surplus 85,000 24,999 8,000 Cash dividends declared 117,999 $217,000 Total liabilities and stockholders' equity
Step by Step Answer:
Criticisms of the balance sheet of the Rasheed Brothers Corporation 1 The basis for the valuation of marketable securities should be shown Marketable ...View the full answer
Related Video
Treasury stock refers to shares of a company\'s own stock that the company has bought back from its shareholders and now holds as a form of asset on its balance sheet. When a company buys back its own stock, it reduces the number of outstanding shares in the market, which can potentially increase the value of the remaining shares. Treasury stock can be acquired through a variety of methods, such as open market purchases, negotiated transactions, or as a result of converting convertible securities. Companies may buy back their own shares for a number of reasons, including to return capital to shareholders, to signal confidence in the company\'s future, or to use the shares for employee stock option plans. While treasury stock does not pay dividends, it can be reissued by the company at a later time, which could dilute the value of the remaining shares. Companies are required to report their treasury stock holdings in their financial statements.
Students also viewed these Accounting questions
-
Presented below and on the next page is the ledger for Heerey Co. Instructions(a) Reproduce the journal entries for the transactions that occurred on October 1, 10, and 20, and provide explanations...
-
Presented below and on the next page are the financial statements of Rajesh Company. Additional data: 1. Depreciation expense is 13,300. 2. Dividends declared and paid were $20,000. 3. During the...
-
On the next page is the income statement for a British company, Avon Rubber plc. Avon prepares its financial statements in accordance with IFRS. Instructions(a) Review the Avon Rubber income...
-
Carbon has the electron configuration 1s 2s2p. The two unpaired electrons in the n = 2 level suggests that carbon will form two bonds. We know, however, that carbon forms four bonds in most compounds...
-
The comparative statements of Pristine Interiors Ltd. are presented as follows: Additional information: 1. All sales were on account. 2. Weighted-average common shares in 2017 were 57,000 and in 2016...
-
Why might a defined-benefit pension plan become underfunded? Explain.
-
Show all the steps leading to the integral balance equation (18.6) in the text. Use the following boundary conditions and verify Eq. (18.7). (i) At \(y=0, T=T_{\mathrm{S}}\). (ii) At...
-
Gordons plants has the following partial income statement for 2015: What is the degree of financial leverage for Gordons? What does this value mean? $ 4,500 (2,000) $ 2,500 Earnings before interest...
-
The Olson Company reports a $ 1 1 6 , 0 0 0 figure that is labeled capital stock on its balance sheet. What information is being communicated?
-
Rochester Manufacturing Corporation (RMC) is considering moving some of its production from traditional numerically controlled machines to a flexible manufacturing system (FMS). Its computer...
-
The assets of Fonzarelli Corporation are presented on the next page (000s omitted).InstructionsIndicate the deficiencies, if any, in the foregoing presentation of Fonzarelli Corporation??sassets....
-
(Presentation of Property, Plant, and Equipment) Carol Keene, corporate comptroller for Dumaine Industries, is trying to decide how to present Property, plant, and equipment in the balance sheet. She...
-
An acceptance sampling plan has Jots of 500 pieces and a sample size of 60. The number of defects in the sample may not exceed 2. This plan, based on an OC curve, has a probability of .57 of...
-
Differentiate between Petrol engine and diesel engine.
-
What is scavenging? Explain the structure and working of two-stroke petrol engine.
-
Differentiate compound bar and composite bar.
-
What is air vessel? What are the functions of air vessel?
-
What is supercharging? Explain the structure and working of two-stroke diesel engine.
-
Rapunzel is a small business that currently sells a single product, shampoo, for \(\$ 4\) per bottle. The variable cost per bottle is \(\$ 3\). Rapunzel's fixed cost totals \(\$ 6000\). Required: a...
-
The test statistic in the NeymanPearson Lemma and the likelihood ratio test statistic K are intimately related. Consider testing H 0 : = 0 versus H a : = a , and let * denote the test statistic...
-
Most people who commit fraud use the embezzled funds to save for retirement. (True/False)
-
Why is it necessary to develop a definitional framework for the basic elements of accounting?
-
Expenses, losses, and distributions to owners are all decreases in net assets. What are the distinctions among them?
-
Expenses, losses, and distributions to owners are all decreases in net assets. What are the distinctions among them?
-
Include your strategies for capitalizing on your strengths and overcoming your weaknesses in order to become successful in your work related goals
-
when Recognizing and Identifying Child Abuse and Neglect, Include some strategies for capitalizing on strengths and overcoming weaknesses in order to become successful in your work-related goals?
-
What can be the most beneficial when learning about Recognizing and Identifying Child Abuse and Neglect? How can Recognizing and Identifying Child Abuse and Neglect will assist you in achieving...
Study smarter with the SolutionInn App