Current assets for two different companies at fiscal year-end 2015 are listed here.

Current assets for two different companies at fiscal year-end 2015 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    
  Cash                               $     6,000                 $     4,000          
  Raw materials inventory           —                       42,625          
  Merchandise inventory           45,625                       —          
  Work in process inventory           —                       31,000          
  Finished goods inventory           —                       51,000          
  Accounts receivable, net           56,000                       67,000          
  Prepaid expenses           4,500                       900          


(1-a)     Based on the amounts, identify which of these company is manufacturer.


Company 2 


(1-b)     Based on the amounts, identify which of these company is a merchandiser.
Company 1 

Explanation:

(1-a)

Company 2, Rayzer Skis Mfg., is a manufacturing company with 3 inventory categories (raw materials, work in process, and finished goods).

(1-b)

Company 1, Sunrise Foods, is a merchandising firm with only one inventory item, merchandise inventory.

(2)     Prepare the current asset section for each company from this information.