The following is the balance sheet of Ingram Industries:

Required
Indicate your criticisms of the balance sheet and briefly explain the proper treatment of any itemcriticized.

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INGRAM INDUSTRIES Balance Sheet June 30, 2010 Assets Current assets: Cash (including $13,000 in sinking fund for bonds payable) Marketable securities Investment in subsidiary company Accounts receivable Inventories (lower-of-cost-or-market) $70,000 23,400 23.000 21,000 117,000 $254,400 Plant assets: Land and buildings Less: Accumulated depreciation S160,000 100,000 60,000 Investments: Treasury stock 4,000 Deferred charges: Discount on bonds payable Prepaid expenses $ 6,000 2,000 8,000 Liabilities and Stockholders' Equity Liabilities: Notes payable to bank Accounts payable Bonds payable $ 60,000 18,000 61,000 Total liabilities $139,000 Stockholders' equity: Preferred and common (each $10 par, 5,000 shares preferred and 6,000 shares common) Capital in excess ofpar Retained eamings $110,000 61,000 16,400 187,400 $326,400 Total liabilities and stockholders' equity