Presented below is the balance sheet of sameed brothers corporation
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.
