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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![CA5-2 (Identifying 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
Cash
Unclaimed payroll checks
Debt investments (trading) (fair value $30,000) at cost
37,000
75,000
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
Total current assets
479,500
Tangible assets
Land (less accumulated depreciation)
Buildings and equipment
Less: Accumulated depreciation
80,000
$800,000
250,000
550,000
Net tangible assets
630,000
Long-term investments
Stocks and bonds
100,000
70,000
Treasury stock
Total long-term investments
170,000
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd5220398-a02a-4f8e-ab05-55b2d65ddb3b%2Fb1ae0421-4b38-4bb8-8be3-7e53cfdf5bc1%2Fguh7yiv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:CA5-2 (Identifying 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
Cash
Unclaimed payroll checks
Debt investments (trading) (fair value $30,000) at cost
37,000
75,000
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
Total current assets
479,500
Tangible assets
Land (less accumulated depreciation)
Buildings and equipment
Less: Accumulated depreciation
80,000
$800,000
250,000
550,000
Net tangible assets
630,000
Long-term investments
Stocks and bonds
100,000
70,000
Treasury stock
Total long-term investments
170,000
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.
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