If you subtract out the accounts receivable, you are still short on shareholder equity given the cash position and liabilties. This means one of three things.
1) he has less cash than what he is showing 2) he has more liabilties than what he is showing ....or most likely 3) the company has issued more shares in return for additional equity...but he neglected to show that.
So as you can see the balance sheet is screwed up in a number of different ways.
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