Question

MESSAGE HY INST CALCULATOR Brief Exercise 19-08 In alphabetical order below are current asset items for Oriole Company's balance sheet at December 31, 2020. Accounts receivable Cash $207,000 Finished goods 70,000 Prepaid expenses 100,000 Raw materials 39,000 Work in process 83,000 90,000 Prepare the current assets section. (List Current Assets in order of liquidity.) ORIOLE COMPANY Balance Sheet

Answer 1

ORIOLE COMPANY
Balance sheet
December 31, 2020
Current assets:
Cash		$70,000
Accounts receivable		$207,000
Inventories
Finished goods	$100,000
Work-in process	$90,000
Raw materials	$83,000
		$273,000
Prepaid Expenses		$39,000
Total current assets		$589,000

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Note:

Finished goods can be sold first when compared to work-in-process and raw material. So, finished goods will be converted first into cash and then the work-in-process and then the raw materials.