Supreme Videos, Inc., produces short musical videos for sale to retail outlets. The companys balance sheet accounts as of January 1, the beginning of its fiscal year, are given below: Supreme Videos, Inc. Balance Sheet January 1 Assets Current assets: Cash $69,000 Accounts receivable 108,000 Inventories: Raw materials (film, costumes) $36,000 Videos in process 51,000 Finished videos awaiting sale 87,000 174,000 Prepaid insurance 10,200 Total current assets 361,200 Studio and equipment 742,000 Less accumulated depreciation 216,000 526,000 Total assets $887,200 Liabilities and Stockholders' Equity Accounts payable $185,200 Capital stock $426,000 Retained earnings 276,000 702,000 Total liabilities and stockholders' equity $887,200