The assets of Fonzarelli Corporation are presented below (000s omitted).

Instructions

Indicate the deficiencies, if any, in the foregoing presentation of Fonzarelli Corporation?s assets.

Transcribed Image Text:

Fonzarelli Corporation Balance Sheet (partial) December 31, 2020 Assets Current assets $ 100,000 Cash Unclaimed payroll checks Debt investments (trading) (fair value $30,000) at cost Accounts receivable (less bad debt reserve) 27,500 37,000 75,000 Inventory-at lower-of-cost (determined by the next-in, first-out method)-or-net realizable value 240,000 Total current assets 479,500 Tangible assets Land (less accumulated depreciation) Buildings and equipment Less: Accumulated depreciation 80,000 $800,000 550,000 250,000 Net tangible assets Long-term investments 630,000 Stocks and bonds 100,000 70,000 Treasury stock Total long-term investments 170,000 Other assets Discount on bonds payable Sinking fund 19,400 975,000 Total other assets 994,400 Total assets $2,273,900