The following is the balance sheet of Sameed Brothers Corporation (000s omitted).

Instructions

Evaluate the balance sheet presented. State briefly the proper treatment of any item criticized.

Transcribed Image Text:

Sameed Brothers Corporation Balance Sheet December 31, 2020 Assets Current assets Cash $26,000 Marketable securities 18,000 Accounts receivable 25,000 Inventory Supplies Stock investment in subsidiary company 20,000 4,000 $113,000 20,000 Assets 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 Reserve for income taxes 15,000 Customers' accounts with credit balances $ 37,001 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 Cash dividends declared 8,000 117,999 Total liabilities and stockholders' equity $217,000