Question

Listed below are current asset items for Lester Company at December 31, 2019. Finished goods inventory $35,000 Cash 22,000 Prepaid expenses 2,000 Accounts receivable 4,000 Short-term investments 25,000 Raw materials inventory 17,000 Work in process inventory 23,000 Supplies 500 Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.)

Answer 1

Current Assets :

Work in process inventory 23,000

Raw materials inventory 17,000

Finished goods inventory 35,000

Supplies 500

Accounts receivable 4,000

Prepaid expenses 2,000

Short-term investments 25,000

Cash 22,000

Total 128,500

Step-by-step explanation:

Current Assets are always shows in the order of their liquidity in the Balance Sheet. That is the order in which they are quickly be converted into cash within a period of less than 12 months. Start with the Inventories to cash and cash equivalents as shown above.