Ask Question
18 September, 02:21

Current assets for two different companies at fiscal year-end 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 $ 11,000 $ 9,000 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 75,000 Prepaid expenses 4,500 900 Required: 1. Identify which set of numbers relates to the manufacturer and which to the merchandiser. 2a. & 2b. Prepare the current asset section for each company from this information.

+2
Answers (1)
  1. 18 September, 02:49
    0
    Requirement 1

    Relating to manufacturer

    Cash

    Raw materials inventory

    Work in process inventory

    Finished goods inventory

    Accounts receivable, net

    Relating to merchandiser

    Cash

    Merchandise inventory

    Accounts receivable, net

    Prepaid expenses

    Requirement 2

    Company Rayzer Skis Mfg Sunrise Foods

    Current Asset Section:

    Cash 11,000 9,000

    Raw materials inventory 39,875 N/A

    Merchandise inventory N/A 42,875

    Work in process inventory 29,000 N/A

    Finished goods inventory 49,000 N/A

    Accounts receivable, net 56,000 75,000

    Prepaid expenses 4,500 900

    Total 189,375 127,775

    Explanation:

    manufacturer produces goods then sells finished goods

    merchandiser purchases goods for resale
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Current assets for two different companies at fiscal year-end are listed here. One is a manufacturer, Rayzer Skis Mfg., and the other, ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers