The data listed below are taken from a statement of financial position of ABC Corporation at December 31, 2021. Some amounts, indicated by question marks, have been intentionally omitted.

Prepare the current asset section of the statement of financial position ABC Corporation based on the given information below. For items not presented as current assets, state the reason why.

Cash and cash equivalents P 239,186

Short-term investments 353,700

Accounts receivable 504,944

Inventory ?

Prepaid expenses (current) 83,259

Total current assets 1,594,927

Long-term receivables 110,800

Equipment (net) ?

Total assets ?

Notes payable (current) 31,116

Accounts payable ?

Accrued liabilities 421,772

Other current liabilities181,604

Total current liabilities 693,564

Long-term debt ?

Total liabilities 956,140

Common stock 370,627

Retained earnings 1,000,000

The bookkeeper for ABS Company has prepared the following balance sheet as of July 31, 2017.

Prepare the current asset section of the statement of financial position as of July 31, 2017, from the available information, adjusting the account balances using the additional information. For items not presented as current assets, state the reason why.

ABS COMPANY

STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 2017

Current assets

Cash P230,000

Accounts receivable (net) 340,000

Inventory (lower-of-average-cost-or-market) 401,000

Equity investments (trading)at cost (fair value P120,000) 140,000

Property, plant, and equipment

Buildings (net) 570,000

Equipment (net) 160,000

Land held for future use 175,000

Intangible assets

Goodwill 80,000

Cash surrender value of life insurance 90,000

Prepaid expenses 12,000

Current liabilities

Accounts payable 135,000

Notes payable (due next year) 125,000

Pension obligation 82,000

Rent payable 49,000

Premium on bonds payable 53,000

Long-term liabilities

Bonds payable 500,000

Stockholders' equity

Common stock, P1.00 par, authorized 400,000 shares, issued 290,000 290,000

Additional paid-in capital 160,000

Retained earnings ?

The following additional information is provided.

1.Cash includes P1,200 in a petty cash fund and P15,000 in a bond sinking fund.

2.The net accounts receivable balance is comprised of the following two items:

(a) accounts receivable P44,000 and

(b) allowance for doubtful accounts P3,500.

3.Inventory costing P5,300 was shipped out on consignment on July 31, 2017. The ending inventory balance does not include the consigned goods. Receivables in the amount of P5,300 were recognized on these consigned goods.

4.Equipment had a cost of P112,000 and an accumulated depreciation balance of P28,000.

5.Income taxes payable of P6,000 were accrued on July 31. Geronimo Company, however, had set up a cash fund to meet this obligation. This cash fund was not included in the cash balance but was offset against the income taxes payable amount.