=+EX 7-12 Merchandise inventory on the balance sheet obj. 6 Based on the data in Exercise 7-11 and assuming that cost was determined by the FIFO method, show how the merchandise inventory would appear on the balance sheet.

Montana White Water Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 2010, Montana White Water incorrectly counted its inventory as $315,600 instead of the correct amount of

$325,000.