Question

2

Current assets for two different companies at fiscal year-end 2017 are listed here. One is a manufacturer, Rayzer Skis Mfg., and the other, Sunrise Foods, is a grocery distribution company Account Company 1 Company 2 $12,000 37,125 $14,000 Cash Raw materials inventory Merchandise inventory 40,125 27,000 47,000 65,000 600 Work in process inventory Finished goods inventory Accounts receivable, net Prepaid expenses 56,000 3,000 Required: (1) Identify 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 2 Company 1 Req 2 Company 2 Req 1 Identify which set of numbers relates to the manufacturer and which to the merchandiser. Which of these company is manufacturer Which of these company is a merchandiser > Req 1 Req 2 Company 1

Answer 1

1.

Manufacturer	Company 2
Merchandiser	Company 1

2.

Rayzer Skies Mfg., Balance Sheet (Partial)
Current Assets:
Cash		$12,000
Accounts receivable, net		65,000
Inventories:
Raw material inventory	$37,125
Work in process inventory	27,000
Finished goods inventory	47,000	111,125
Prepaid expenses		600
Total current assets		$188,725

Sunrise Foods Balance Sheet (Partial)
Current Assets;
Cash	$14,000
Accounts receivable, net	56,000
Merchandise inventory	40,125
Prepaid expenses	3,000
Total current assets	$113,125