Integrating Case 4-15 Balance Sheet and Income Statement Chapters 3 and 4 Requirement There are several deficiencies in the financial statements brisk by the controller for rice Corporation. The addition subsection of the commensurateness sheet can be overturned down into triplet categories. This corporations assets can be allocated as electric accepted assets, investments, and topographic point, plant, and equipment. The $78,000 in marketable securities should be divided between incumbent and non- catamenia assets. Short-term investments would beseech a end of $57,000. Investments ( long) will show a balance of $21,000. The miscellaneous expense that is inform on the income statement should be separately reported, as users should be do aware of events reported in the income statement that are non likely to occur once again in the foreseeable forthcoming (Spiceland, Sepe, & Nelson, 2011, p. 180). This situation would move to a lower place income from continui ng operations and should be considered a loss. Similar to the assets section, the liabilities section should be divided into modern and long-term liabilities. Classifying the liabilities in this management will help to house the bank with additional learning to determine the liquidity of Rice Corporation (Spiceland, et al., 2011, p. 115).
The first name collectible ($80,000) is entirely classify as a circulating(prenominal) liability. It would be listed under the flow rate liability section as a note payable. The stand by note payable ($120,000) should be divided between current liabilities ($60,000) and l ong-term debt ($60,000). The current portion! should read current maturities of long-term debt (Spiceland, et al., 2011, p. 120). Shareholders equity would be listed below long-term liabilities. The line item for allowance for regretful accounts should be grouped with accounts receivable. This figure should be deducted from the accounts receivable. The result is a $437,000 balance for accounts receivable, net. In the same way, the superior cost of property and...If you want to get a full-of-the-moon essay, order it on our website: OrderCustomPaper.com
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