Question

Current assets for two different companies at fiscal year-end 2017 are listed here. One is a manufacturer, Rayzer Skis Mig, and the other, Sunrise Foods, is a grocery distribution company Account Company 1 Company 2 $ 7,000 $5,eee 42,eee Raw waterials inventory Merchandise inventory Work in process inventory Finished goods inventory Accounts receivable, het Prepaid expenses 75,00 Required: (1) Idenuity which set of numbers relates to the manufacturer and which to the merchandiser (2) Prepare the current asset section for each company from this Information Complete this question by entering your answers in the tabs below. Req Company Company 2 Prepare the current asset section for company 1 from this information Sheet rent Asset Section December 31, 2017 Reg 2 Co2 > Fished goodsventory Merchandise inventory

Answer 1

1) Manufacturing firm are those firms who manufactures the product means those firms which make the product are considered as manufacturing firms. Manufacturing firm includes three types of inventories raw materials inventory, work in process inventory and finished goods inventory while merchandising firm does not make product. They simply buy the product and resell them. So, it only includes merchandise inventory.

Company 1 is the merchandiser as there is no raw materials inventory, work in process inventory and finished goods inventory but there is merchandise inventory.

Company 2 is the manufacturer as it includes all raw materials inventory, work in process inventory and finished goods inventory.

2)

Company 1
Sunrise Foods
Balance Sheet- Current Asset Section
December 31, 2017
Cash	$7000
Merchandise inventory	45000
Accounts receivable	62000
Prepaid expenses	1500
Total current assets	$115500

Company 2
Rayzer- Skis Mfg.
Balance Sheet- Current Asset Section
December 31, 2017
Cash	$5000
Raw materials inventory	42000
Work in process inventory	30000
Finished goods inventory	50000
Account receivable, net	75000
Prepaid expenses	900
Total current assets	$202900