Rivera Company's current assets total $1.346 million, driven by cash, receivables, and a diverse inventory.
Current Assets
Cash:
As of December 31, Rivera Company held $190,000 in cash, providing immediate liquidity to meet its financial obligations.
Receivables (net):
Rivera Company's accounts receivable, net of estimated uncollectible accounts, amounted to $400,000, representing outstanding payments from customers for goods or services provided.
Inventory:
The company's inventory consisted of three components:
* Raw materials: $335,000 in raw materials represented the unconverted inputs into the production process.
* Work in process: $200,000 in work in process reflected partially completed goods awaiting further processing.
* Finished goods: $170,000 in finished goods represented inventory ready for sale to customers.
* Total inventory: The combined value of raw materials, work in process, and finished goods totaled $705,000.
Prepaid insurance:
Rivera Company had prepaid insurance amounting to $41,000, representing future insurance coverage that has already been paid for.
Total Current Assets:
The aggregation of cash, receivables, inventory, and prepaid insurance amounted to $1,346,000, representing Rivera Company's current assets readily available to meet its short-term financial commitments.
Question:-
Included in the December 31 trial balance of Rivera Company are the following assets.
Cash $190,000 Work in process $200,000
Equipment (net) 1,100,000 Receivables (net) 400,000
Prepaid insurance 41,000 Patents 110,000
Raw materials 335,000 Finished goods 170,000
Prepare the current assets section of the December 31 balance sheet.