CA5-2 (Identifying Balance Sheet Deficiencies) The assets of Fonzarelli Corporation are presented below (000s omitted),FONZARELLI CORPORATIONBALANCE SHEET (PARTIAL)DECEMBER 31, 2017AssetsCurrent assets$ 100,00027,500CashUnclaimed payroll checksDebt investments (trading) (fair value $30,000) at cost37,00075,000Accounts receivable (less bad debt reserve)Inventory-at lower-of-cost (determined by the next-in,first-out method)-or-net realizable value240,000Total current assets479,500Tangible assetsLand (less accumulated depreciation)Buildings and equipmentLess: Accumulated depreciation80,000$800,000250,000550,000Net tangible assets630,000Long-term investmentsStocks and bonds100,00070,000Treasury stockTotal long-term investments170,000Other assetsDiscount on bonds payableSinking fund19,400975,000Total other assets994,400Total assets$2,273,900InstructionsIndicate the deficiencies, if any, in the foregoing presentation of Fonzarelli Corporation's assets.

A balance sheet is a financial statement that shows a company's current financial condition,…

ddentifying Balance Sheet Deficiencies) The assets of Fonzarelli Corporation are presented below (000s omitted), FONZARELLI CORPORATION BALANCE SHEET (PARTIAL) DECEMBER 31, 2017 Assets Current assets $ 100,000 27,500 37,000 75,000 Cash Unclaimed payroll checks Debt investments (trading) (fair value $30,000) at cost Accounts receivable (less bad debt reserve) Inventory-at lower-of-cost (determined by the next-in, first-out method)-or-net realizable value 240,000 479,500 Total current assets Tangible assets Land (less accumulated depreciation) Buildings and equipment Less: Accumulated depreciation 80,000 S800,000 250,000 550,000 630,000 Net tangible assets Long-term investments Stocks and bonds Treasury stock 100,000 70,000 170,000 Total long-term investments Other assets Discount on bonds payable Sinking fund 19,400 975,000 Total other assets 994,400 Total assets $2,273,900 Instructions Indicate the deficiencies, if any, in the foregoing presentation of Fonzarelli Corporation's assets.

ddentifying Balance Sheet Deficiencies) The assets of Fonzarelli Corporation are presented below (000s omitted), FONZARELLI CORPORATION BALANCE SHEET (PARTIAL) DECEMBER 31, 2017 Assets Current assets $ 100,000 27,500 37,000 75,000 Cash Unclaimed payroll checks Debt investments (trading) (fair value $30,000) at cost Accounts receivable (less bad debt reserve) Inventory-at lower-of-cost (determined by the next-in, first-out method)-or-net realizable value 240,000 479,500 Total current assets Tangible assets Land (less accumulated depreciation) Buildings and equipment Less: Accumulated depreciation 80,000 S800,000 250,000 550,000 630,000 Net tangible assets Long-term investments Stocks and bonds Treasury stock 100,000 70,000 170,000 Total long-term investments Other assets Discount on bonds payable Sinking fund 19,400 975,000 Total other assets 994,400 Total assets $2,273,900 Instructions Indicate the deficiencies, if any, in the foregoing presentation of Fonzarelli Corporation's assets.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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