Prepare the current assest section of the balance sheet (Learning Objective 5) Consider the following selected amounts and account balances of Lords:

Show how Lords reports current assets on the balance sheet. Not all data are used. Is Lords a service company, a merchandiser, or a manufacturer? How do you know?

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Cost of goods sold... $104,000 Prepaid expenses. $ 6,000 Direct labor......... 47,000 Marketing expense............... 30,000 Direct materials used............... 20,000 Work in process inventory..... 40,000 Accounts receivable.............. Cash............... 15,000 Cost of goods manufactured... 94,000 80,000 Manufacturing overhead.......... 26,000 Finished goods inventory.......... 63,000 Raw materials inventory 10,000