Homework answers / question archive / INGRAM INDUSTRIES Balance Sheet June 30, 2008   Assets Current assets: Cash (including $13,000 in sinking fund for bonds payable) $ 70,000 Marketable securities 23,400 Investment in subsidiary company 23,000 Accounts receivable 21,000 Inventories (lower-of-cost-or-market) 117,00 $254,400 Plant assets: Land and buildings $160,000 Less: Accumulated depreciation 100,000 60,000 Investments: Treasury stock 4,000 Deferred charges: Discount on bonds payable $ 6,000 Prepaid expenses 2,000 8,000 Total Assets $326,400 Liabilities and Stockholders’ Equity Liabilities: Notes payable to bank $ 60,000 Accounts payable 18,000 Bonds payable 61,000 Total liabilities $139,000   Stockholders’ equity: Preferred and common (each $10 par, 5,000 shares preferred and 6,000 shares common) $110,000   Capital in excess of par 61,000 Retained earnings 16,400 187,400 Total liabilities and stockholders’ equity $326,400 Required: Indicate your criticisms of the balance sheet and briefly explain the proper treatment of any item criticized

INGRAM INDUSTRIES Balance Sheet June 30, 2008   Assets Current assets: Cash (including $13,000 in sinking fund for bonds payable) $ 70,000 Marketable securities 23,400 Investment in subsidiary company 23,000 Accounts receivable 21,000 Inventories (lower-of-cost-or-market) 117,00 $254,400 Plant assets: Land and buildings $160,000 Less: Accumulated depreciation 100,000 60,000 Investments: Treasury stock 4,000 Deferred charges: Discount on bonds payable $ 6,000 Prepaid expenses 2,000 8,000 Total Assets $326,400 Liabilities and Stockholders’ Equity Liabilities: Notes payable to bank $ 60,000 Accounts payable 18,000 Bonds payable 61,000 Total liabilities $139,000   Stockholders’ equity: Preferred and common (each $10 par, 5,000 shares preferred and 6,000 shares common) $110,000   Capital in excess of par 61,000 Retained earnings 16,400 187,400 Total liabilities and stockholders’ equity $326,400 Required: Indicate your criticisms of the balance sheet and briefly explain the proper treatment of any item criticized

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INGRAM INDUSTRIES

Balance Sheet

June 30, 2008

 

Assets

Current assets:

Cash (including $13,000 in sinking fund for bonds payable) $ 70,000

Marketable securities 23,400

Investment in subsidiary company 23,000

Accounts receivable 21,000

Inventories (lower-of-cost-or-market) 117,00 $254,400

Plant assets:

Land and buildings $160,000

Less: Accumulated depreciation 100,000 60,000

Investments:

Treasury stock 4,000

Deferred charges:

Discount on bonds payable $ 6,000

Prepaid expenses 2,000 8,000

Total Assets $326,400

Liabilities and Stockholders’

Equity Liabilities:

Notes payable to bank $ 60,000

Accounts payable 18,000

Bonds payable 61,000

Total liabilities $139,000

 

Stockholders’ equity:

Preferred and common

(each $10 par, 5,000 shares preferred and 6,000 shares common) $110,000

 

Capital in excess of par 61,000

Retained earnings 16,400 187,400

Total liabilities and stockholders’ equity $326,400

Required: Indicate your criticisms of the balance sheet and briefly explain the proper treatment of any item criticized.