Presented below is a list of items that may or may not be reported as inventory in a companys December 31 balance sheet. Indicate which of these items would typically be reported as inventory in the financial statements. If an item should not be reported as inventory, indicate how it should be reported in the financial statements.

				Item in Financial Statement		Financial Statement
1.		Goods out on consignment at another companys store.		Office SuppliesInterest ExpenseInventoryAdvertising ExpenseShort-term InvestmentsCost of Goods SoldNot Reported		Balance SheetIncome StatementNot Reported
2.		Goods sold on an installment basis (bad debts can be reasonably estimated).		Cost of Goods SoldNot ReportedInterest ExpenseInventoryShort-term InvestmentsAdvertising ExpenseOffice Supplies		Balance SheetIncome StatementNot Reported
3.		Goods purchased f.o.b. shipping point that are in transit at December 31.		Interest ExpenseOffice SuppliesInventoryCost of Goods SoldNot ReportedAdvertising ExpenseShort-term Investments		Balance SheetIncome StatementNot Reported
4.		Goods purchased f.o.b. destination that are in transit at December 31.		Cost of Goods SoldNot ReportedAdvertising ExpenseShort-term InvestmentsOffice SuppliesInventoryInterest Expense		Balance SheetIncome StatementNot Reported
5.		Goods sold to another company, for which our company has signed an agreement to repurchase at a set price that covers all costs related to the inventory.		Cost of Goods SoldAdvertising ExpenseNot ReportedInterest ExpenseShort-term InvestmentsOffice SuppliesInventory		Balance SheetIncome StatementNot Reported
6.		Goods sold where large returns are predictable.		Office SuppliesNot ReportedShort-term InvestmentsCost of Goods SoldInterest ExpenseInventoryAdvertising Expense		Balance SheetIncome StatementNot Reported
7.		Goods sold f.o.b. shipping point that are in transit at December 31.		Advertising ExpenseOffice SuppliesInterest ExpenseShort-term InvestmentsInventoryCost of Goods SoldNot Reported		Balance SheetIncome StatementNot Reported
8.		Freight charges on goods purchased.		Cost of Goods SoldAdvertising ExpenseShort-term InvestmentsInterest ExpenseNot ReportedOffice SuppliesInventory		Balance SheetIncome StatementNot Reported
9.		Interest costs incurred for inventories that are routinely manufactured.		Interest ExpenseAdvertising ExpenseShort-term InvestmentsInventoryCost of Goods SoldOffice SuppliesNot Reported		Balance SheetIncome StatementNot Reported
10.		Costs incurred to advertise goods held for resale.		Short-term InvestmentsOffice SuppliesAdvertising ExpenseNot ReportedInventoryInterest ExpenseCost of Goods Sold		Balance SheetIncome StatementNot Reported
11.		Materials on hand not yet placed into production by a manufacturing firm.		Interest ExpenseAdvertising ExpenseOffice SuppliesNot ReportedShort-term InvestmentsInventoryCost of Goods Sold		Balance SheetIncome StatementNot Reported
12.		Office supplies.		Not ReportedInterest ExpenseAdvertising ExpenseCost of Goods SoldShort-term InvestmentsInventoryOffice Supplies		Balance SheetIncome StatementNot Reported
13.		Raw materials on which a manufacturing firm has started production but which are not completely processed.		Office SuppliesAdvertising ExpenseInventoryNot ReportedCost of Goods SoldInterest ExpenseShort-term Investments		Balance SheetIncome StatementNot Reported
14.		Factory supplies.		Short-term InvestmentsNot ReportedInventoryCost of Goods SoldAdvertising ExpenseInterest ExpenseOffice Supplies		Balance SheetIncome StatementNot Reported
15.		Goods held on consignment from another company.		Interest ExpenseShort-term InvestmentsAdvertising ExpenseOffice SuppliesInventoryCost of Goods SoldNot Reported		Balance SheetIncome StatementNot Reported
16.		Costs identified with units completed by a manufacturing firm but not yet sold.		Advertising ExpenseInventoryCost of Goods SoldInterest ExpenseOffice SuppliesNot ReportedShort-term Investments		Balance SheetIncome StatementNot Reported
17.		Goods sold f.o.b. destination that are in transit at December 31.		Cost of Goods SoldInterest ExpenseOffice SuppliesNot ReportedAdvertising ExpenseShort-term InvestmentsInventory		Balance SheetIncome StatementNot Reported
18.		Short-term investments in stocks and bonds that will be resold in the near future.		InventoryCost of Goods SoldNot ReportedInterest ExpenseShort-term InvestmentsAdvertising ExpenseOffice Supplies		Balance SheetIncome StatementNot Reported