Exercise 5-7 Presented below are selected accounts of Sage Company at December 31, 2017. Inventory (finished goods) Unearned Service Revenue Equipment Inventory (work in process) Cash (not including restricted cash) Debt Investments (trading) Customer Advances Restricted Cash for Plant Expansion $ 62,000 Cost of Goods Sold 96,200 Notes Receivable 260,500 Accounts Receivable 42,500 Inventory (raw materials) 37,000 Supplies Expense 39,000 Allowance for Doubtful Accounts 44,200 Licenses 53,200 Additional Paid-in Capital Treasury Stock $2,106,200 36,200 148,960 199,640 65,630 12,520 16,320 88,890 22,160 The following additional information is available. 1. Inventories are valued at lower-of-cost-or-market using LIFO. 2. Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $46,748. 3. The short-term investments have a fair value of $31,010. 4. The notes receivable are due April 30, 2019, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrued interest due on December 31, 2017.) 5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $45,100 are pledged as collateral on a bank loan. 6. Licenses are recorded net of accumulated amortization of $13,080. 7. Treasury stock is recorded at cost. Prepare the current assets section of Sage Company's December 31, 2017, balance sheet, with appropriate disclosures. (List Current Assets in order of liquidity. Enter account name only and do not provide the descriptive information provided in the question.) SAGE COMPANY Balance Sheet (Partial)