End-of-year current assets for two different companies follow. One is a manufacturer, Rayzer Skis Manufacturing, and the other, Sunrise Foods, is a merchandiser.

 End-of-year current assets for two different companies follow. One is a manufacturer, Rayzer Skis Manufacturing, and the other, Sunrise Foods, is a merchandiser.
 

Account    Company 1    Company 2
Cash    $ 7,000    $ 5,000
Merchandise inventory    45,000    —
Raw materials inventory    —    42,000
Work in process inventory    —    30,000
Finished goods inventory    —    50,000
Accounts receivable, net    62,000    75,000
Prepaid expenses    1,500    900

1. Identify which set of numbers relates to the manufacturer and which to the merchandiser.

2a. & 2b. Prepare the current asset section of the balance sheet at December 31 for each company.

 

Prepare the current asset section of the balance sheet at December 31 for Company 1.

Prepare the current asset section of the balance sheet at December 31 for Company 2.

 

Explanation
1.
Company 1 = Sunrise Foods
Data shows a merchandising firm as there is only one inventory item, Merchandise Inventory.

Company 2 = Rayzer Skis Manufacturing
Data reveals a manufacturing company as there are three inventory categories (Raw materials, Work in process, and Finished goods).

thx