The following is the balance sheet of Sameed Brothers ­Corporation (000s omitted). Evaluate the balance sheet presented. State briefly the proper treatment of any item criticized.
Sameed Brothers Corporation Balance Sheet
Sameed Brothers Corporation
Balance Sheet
December 31, 2020
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