In this example, the inventory consists of those finished goods ... they are expensed as cost of sales - not before! As you can see, all business transactions affect the balance sheet, but not all ...

Current assets are resources that an organization anticipates will be changed into cash, sold or realized within a one-year ...

Wheelwright, Steven C., and William Schmidt. "Scientific Glass Incorporated: Inventory Management, Spreadsheet Supplement (Brief Case)." Harvard Business School Spreadsheet Supplement 104-210, June ...