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