Question: Exercise 1-7 Balance sheet identification and preparation LO C4 Current assets for two different companies at fiscal year-end 2017 are listed here. One is a
Exercise 1-7 Balance sheet identification and preparation LO C4
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 | $ | 8,000 | $ | 6,000 | ||||
| Raw materials inventory | 39,875 | |||||||
| Merchandise inventory | 42,875 | |||||||
| Work in process inventory | 29,000 | |||||||
| Finished goods inventory | 49,000 | |||||||
| Accounts receivable, net | 56,000 | 73,000 | ||||||
| Prepaid expenses | 4,000 | 800 | ||||||
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.
Identify which set of numbers relates to the manufacturer and which to the merchandiser.
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Prepare the current asset section for company 1 from this information.
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Prepare the current asset section for company 2 from this information.
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