Current assets for two different companies at fiscal yearend

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 Company1 Company 2 Cash Raw materials inventory Merchandise inventory Work in process inventory Finished goods inventory Accounts receivable, net Prepaid expenses $. 7,000 5,000 38,500 41,500 28,000 48,000 70,000 1,000 60,000 5,000 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

Solution

1 Company 2 is manufacturer Company 1 is merchandiser 2 Company 1 Current Asset Section Cash 7000 Accounts receivable 60000 Merchandise inventory 41500 Prepaid expenses 5000 Total current assets 113500 Company 2 Current Asset Section Cash 5000 Accounts receivable 70000 Raw materials inventory 38500 Work in process inventory 28000 Finished goods inventory 48000 Prepaid expenses 1000 Total current assets 190500