The following table presents summarized financial statements for Whiskey Golf Ltd., in $000€™s.

In addition, you also know that the company declared and paid $80,000 of dividends on preferred shares in each of the two years.

Required:
Identify five substantive errors in the above financial statements. There are no arithmetic errors. To save space, the above presentation is necessarily abbreviated, so do not consider omission of detailed line items to be errors. Assume that all required disclosures have been made in the notes to the financial statements. The company did not have any transactions involving other comprehensive income.

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Balance Sheet, as at December 31 2017 250 2,000 1,500 2018 2018 2017 Accounts payable Current portion of long-term debt Current liabilities Long-term debt Preferred shares Common shares Retained earnings Total equity Total liabilities and equity Cash 180 740 1,400 300 Accounts receivable (net) Inventories Prepaid expenses 2,500 1,800 300 1,040 1,700 1,200 300 900 210 Land Plant and equipment (net) Intangible assets Goodwill 500 500 800 800 3,500 3,820 2,000 2,000 4,860 20 20 3,400 7,400 8,560 800 800 Total assets 9,600 9,100 9,100 9,600 Statement of Comprehensive Income For the year ended December 31 2018 2017 Revenue 7,500 7,000 Cost of goods sold (4,900) (4,800) Interest expense (400) (400) Earnings before tax 2,200 1,800 Income taxes (660) (540) Income before discontinued operations 1,540 1,260 Loss on discontinued operations (600) Net income 940 1,260