Exercise 5-7 Presented below are selected accounts of Sandhill 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 $ 58,600 97,000 260,700 42,300 43,700 33,500 52,200 54,000 Cost of Goods Sold Notes Receivable Accounts Receivable Inventory (raw materials) Supplies Expense Allowance for Doubtful Accounts Licenses Additional Paid-in Capital Treasury Stock $2,109,500 42,000 161,850 202,780 62,840 12,140 19,180 92,560 21,680 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 $54,748. 3. The short-term investments have a fair value of $28,540. 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 $46,700 are pledged as collateral on a bank loan. 6. Licenses are recorded net of accumulated amortization of $14,410. 7. Treasury stock is recorded at cost. Prepare the current assets section of Sandhill 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.) Balance Sheet (Partial) December 31, 2017