Question

Current assets for two different companies at fiscal year-end 2017 are listed here. One is a...

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
Cash $ 15,000 $ 13,000
Raw materials inventory — 45,375
Merchandise inventory 48,375 —
Work in process inventory — 33,000
Finished goods inventory — 53,000
Accounts receivable, net 68,000 83,000
Prepaid expenses 3,500 700


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.

  • Req 1
  • Req 2 Company 1
  • Req 2 Company 2

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 2 Company 1
  • Req 2 Company 2

Prepare the current asset section for company 1 from this information.
Company 1
Sunrise Foods
Balance Sheet–Current Asset Section
December 31, 2017
Total current assets
  • Req 2 Company 2

Prepare the current asset section for company 2 from this information.
Company 2
Rayzer Skis Mfg.
Balance Sheet–Current Asset Section
December 31, 2017
Total current assets
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Homework Answers

Answer #1

Identify which set of numbers relates to the manufacturer and which to the merchandiser.
Which of these company is manufacturer Company 2
Which of these company is a merchandiser Company 1

Prepare the current asset section for company 1 from this information.
Company 1
Sunrise Foods
Balance Sheet–Current Asset Section
December 31, 2017
Cash 15000
Account receivable 68000
Merchandise inventory 48375
Prepaid expense 3500
Total current assets 134875

Prepare the current asset section for company 2 from this information.
Company 2
Rayzer Skis Mfg.
Balance Sheet–Current Asset Section
December 31, 2017
Cash 13000
Accounts receivable, net 83000
Finished goods 53000
Work in process inventory 33000
Raw materials inventory 45375
Prepaid expense 700
Total Current assets 228075
Total current assets
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