Presented below is the balance sheet of Rubber Industries.
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RUBBER INDUSTRIES |
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Balance Sheet |
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For the Year Ended December 31, 2000 |
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Assets |
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Current assets: |
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Cash |
$50,000 |
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Marketable equity securities |
19,000 |
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Accounts receivable, net |
60,000 |
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Inventory |
30,000 |
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Treasury stock |
20,000 |
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Total current assets |
179,000 |
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Plant assets: |
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Land and buildings, net |
160,000 |
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Investments: |
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Short-term U.S. notes |
20,000 |
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Other assets: |
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Supplies |
4,000 |
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Total assets |
$363,000 |
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Liabilities and Stockholders’ Equity |
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Liabilities: |
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Bonds payable |
$120,000 |
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Accounts payable |
40,000 |
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Wages payable |
10,000 |
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Premium on bonds payable |
3,000 |
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Total liabilities |
173,000 |
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Stockholders’ equity: |
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Common stock ($20 par, 20,000 shares |
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authorized, 6,000 shares outstanding) |
120,000 |
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Retained earnings |
30,000 |
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Minority interest |
20,000 |
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Redeemable preferred stock |
20,000 |
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Total liabilities and stockholders’ equity |
$363,000 |
Required Indicate your criticisms of the balance sheet and briefly explain the proper treatment of any item criticized.