Presented below is the balance sheet of Sameed Brothers Corporation

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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.

    • 8 years ago
    Presented below is the balance sheet of Sameed Brothers Corporation
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