--HOMEWORK ASSIGNMENT- Here is a comprehensive example. The Northwest Bat Company manufactures wood baseball bats. Northwest's two products are a youth bat, made for children and young teens, and an adult bat, designed for high school and college-age players. Bats are sold to sporting goods stores and all are on account. The youth bat sells for $35; the adult bat sells for $65. The highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Northwest's balance sheet for December 31, 2018 is below. Northwest Bat Company Balance Sheet December 31, 2018 Assets Current Assets: Cash 30,000 Accounts Receivable 22,500 Raw Materials Inventory 11,000 Finished Goods Inventory 20.250 Total Current Assets S 83,750) Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation 125,000 (50,000) 75,000 Total Assets 158,750 Liabilities Current Liabilities: I Accounts Payable $ 12,500 Stockholders' Equity Common Stock 100,000 Retained Earnings 46,250 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 146,250 $ 158,750