Current assets for two different companies at calendar year-end 2009 are listed here. One is a manufacturer, Nordic Skis Mfg., and the other, Fresh Foods, is a grocery distribution company.

(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. Discuss why the current asset section for these two companies isdifferent.

Account CompanyI Company 2 $11,000 41.250 Raw materials inventory Merchandise inventory. Goods in process inventory Finished goods inventory Accounts receivable, net .._.. - Prepaid expenses 44,250 30,000 50,000 81,000 600 62,000 3,000