Question

Current assets for two different companies at fiscal year-end are listed here. One is a manufacturer, Rayzer Skis Mfg., and the other, Sunrise Foods, is a grocery distribution company. Account Cash Raw materials inventory Merchandise inventory Work in process inventory Finished goods inventory Accounts receivable, net Prepaid expenses Company 1 Company 2 $ 5,000 $3,000 34,375 37,375 25,000 45,000 57,000 76,000 4,500 900 Required: 1. Identify which set of numbers relates to the manufacturer and which to the merchandiser. 2a. & 2b. Prepare the current asset section for each company from this information. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Identify which set of numbers relates to the manufacturer and which to the merchandiser. Company 1 Which of these company is manufacturer Which of these company is a merchandiser Reg 1 Req2A >

Answer 1

Solution:

1) Company 2 is manufacturer

Company 1 is merchandiser

2:

Company1

Current assets section
Cash	5,000
Accounts receivable	57,000
Merchandise inventory	37,375
Prepaid expenses	4,500
Total current assets	103,875

Company 2

Current asset section
cash	3,000
Account receivable	76,000
Raw materials inventory	34,375
Work in progress inventory	25,000
Finished goods inventory	45,000
Prepaid expenses	900
Toatl current assets	184,275