The statement of financial position of Manion Corporation follows (in thousands):

Instructions

Evaluate the statement of financial position. Briefly describe the proper treatment of any item that you find incorrect. Assume the company follows IFRS.

Transcribed Image Text:

Manion Corporation Statement of Financial Position December 31, 2020 Assets Current assets Cash $26,000 Accounts receivable 25,000 20,000 Inventory Supplies Investment in subsidiary company 4,000 $113,000 38,000 Investments Investments in shares 25,000 Property, plant, and equipment Buildings and land Less: Reserve for depreciation 91,000 31,000 60,000 Other assets Investment in bonds to be held to maturity (at cost) 19,000 $217,000 Liabilities and shareholders' equity Current liabilities Accounts payable $2,000 Reserve for income taxes 15,000 $ 37,001 Customer accounts with credit balances Long-term liabilities Bonds payable 62,000 Total liabilities 99,001 Shareholders' equity Common shares issued 85,000 Earned surplus and other accumulated surplus Cash dividends declared 24,999 8,000 117,999 $217,000