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A manufacturing firm produces highly specialized industrial equipment. The length of the time between purchasing raw materials to make the equipment and the date the

A manufacturing firm produces highly specialized industrial equipment. The length of the time between purchasing raw materials to make the equipment and the date the firm completes the production and delivers the equipment is usually 14 months. The firm receives payment 15 months after the delivery of the equipment.

Determine how should the company present its inventory and trade receivables in its statement of financial position (explain your answer).

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