CA5-3 (Critique
of Balance Sheet Format and Content)
Presented below
is the balance sheet of Sameed Brothers Corporation (000s omitted).
SAMEED BROTHERS
CORPORATION
Balance Sheet
December 31, 2014
Assets
Current assets
Cash $26,000
Marketable
securities 18,000
Accounts
receivable 25,000
Inventory 20,000
Supplies 4,000
Stock investment
in subsidiary company 20,000 $113,000
Investments
Treasury stock 25,000
Property, plant,
and equipment
Buildings and
land 91,000
Less:
Reserve for depreciation 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 1 $ 37,001
Deferred
credits
Unamortized
premium on bonds payable 2,000
Long-term
liabilities
Bonds payable 60,000
Total
liabilities 99,001
Common
stock
Common stock,
par $5 85,000
Earned
surplus 24,999
Cash
dividends declared 8,000 117,999
Total
liabilities and stockholders' equity $217,000
Instructions
Evaluate the
balance sheet presented. State briefly the proper treatment of any item
criticized.
TUTORIAL PREVIEW
(1) Unclaimed payroll checks should be shown as a current liability if these are claims by employees.
File name: CA5-3 Sameed
Brothers Corporation.docx File type: . docx PRICE:$6
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