You recently joined the auditing staff of Best, Best, and Krug, CPAs. You have been assigned to the audit of Clearview, Inc., and have been asked by the audit senior to examine the balance sheet prepared by Clearview’s accountant.

Required: 

Identify the items in the statement that most likely would require further disclosure either on the face of the statement or in a note. Further identify those items that would require disclosure in the significant accounting policies note.

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CLEARVIEW, INC. Balance Sheet At December 31, 2021 ($ in millions) Assets Current assets: Cash $ 10.5 Accounts receivable 112.1 Inventory 220.6 Prepaid expenses 5.5 Total current assets 348.7 Investments 22.0 Property, plant, and equipment (net) 486.9 Total assets $857.6 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 83.5 Accrued taxes and interest 25.5 Current maturities of long-term debt 20.0 Total current liabilities 129.0 Long-term liabilities: 420.0 Total liabilities 549.0 Shareholders' equity: Common stock $100.0 Retained earnings Total shareholders' equity 208.6 308.6 Total liabilities and shareholders' equity $857.6