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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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### Current Assets for Two Companies at Fiscal Year-End 2017 **Overview:** This page provides the current asset details for two different companies for the fiscal year-end of 2017. One of the companies is a manufacturer, Rayzer Skis Mfg., and the other is a grocery distribution company, Sunrise Foods. Your task is to identify which set of numbers belongs to the manufacturer and which to the grocery distributor, and to prepare the current asset section for each company. **Current Assets Data:** | Account | Company 1 | Company 2 | |--------------------------|-----------|-----------| | Cash | $7,000 | $5,000 | | Raw materials inventory | --- | $42,000 | | Merchandise inventory | $45,000 | --- | | Work in process inventory| --- | $30,000 | | Finished goods inventory | --- | $50,000 | | Accounts receivable, net | $62,000 | $75,000 | | Prepaid expenses | $1,500 | $900 | **Required Tasks:** 1. Identify which set of numbers pertains to the manufacturer and which to the merchandiser. 2. Prepare the current asset section for both companies based on the provided information. **Preparation Steps:** 1. **Identify Company Types:** - **Manufacturer (Rayzer Skis Mfg.)**: Typically has raw materials inventory, work in process inventory, and finished goods inventory. - **Merchandiser (Sunrise Foods)**: Generally shows merchandise inventory. Based on the given data: - Company 1, with merchandise inventory, is likely the merchandiser (Sunrise Foods). - Company 2, showing raw materials, work in process, and finished goods inventories, is the manufacturer (Rayzer Skis Mfg.). 2. **Prepare Current Asset Sections:** **For Company 1 (Sunrise Foods):** **Balance Sheet—Current Asset Section (December 31, 2017)** | Account | Amount | |------------------------------|----------| | Cash | $7,000 | | Merchandise inventory | $45,000 | | Accounts receivable, net | $62,000 | | Prepaid expenses | $1,500 | | **Total current assets** | **TBD
Transcribed Image Text:### Current Assets for Two Companies at Fiscal Year-End 2017 **Overview:** This page provides the current asset details for two different companies for the fiscal year-end of 2017. One of the companies is a manufacturer, Rayzer Skis Mfg., and the other is a grocery distribution company, Sunrise Foods. Your task is to identify which set of numbers belongs to the manufacturer and which to the grocery distributor, and to prepare the current asset section for each company. **Current Assets Data:** | Account | Company 1 | Company 2 | |--------------------------|-----------|-----------| | Cash | $7,000 | $5,000 | | Raw materials inventory | --- | $42,000 | | Merchandise inventory | $45,000 | --- | | Work in process inventory| --- | $30,000 | | Finished goods inventory | --- | $50,000 | | Accounts receivable, net | $62,000 | $75,000 | | Prepaid expenses | $1,500 | $900 | **Required Tasks:** 1. Identify which set of numbers pertains to the manufacturer and which to the merchandiser. 2. Prepare the current asset section for both companies based on the provided information. **Preparation Steps:** 1. **Identify Company Types:** - **Manufacturer (Rayzer Skis Mfg.)**: Typically has raw materials inventory, work in process inventory, and finished goods inventory. - **Merchandiser (Sunrise Foods)**: Generally shows merchandise inventory. Based on the given data: - Company 1, with merchandise inventory, is likely the merchandiser (Sunrise Foods). - Company 2, showing raw materials, work in process, and finished goods inventories, is the manufacturer (Rayzer Skis Mfg.). 2. **Prepare Current Asset Sections:** **For Company 1 (Sunrise Foods):** **Balance Sheet—Current Asset Section (December 31, 2017)** | Account | Amount | |------------------------------|----------| | Cash | $7,000 | | Merchandise inventory | $45,000 | | Accounts receivable, net | $62,000 | | Prepaid expenses | $1,500 | | **Total current assets** | **TBD
**Understanding Current Assets: Manufacturer vs. Merchandiser** **Overview:** 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. **Current Assets Table:** | Account | Company 1 | Company 2 | |--------------------------|-----------|-----------| | Cash | $7,000 | $5,000 | | Raw materials inventory | — | 42,000 | | Merchandise inventory | 45,000 | — | | Work in process inventory| — | 30,000 | | Finished goods inventory | — | 50,000 | | Accounts receivable, net | 62,000 | 75,000 | | Prepaid expenses | 1,500 | 900 | ### Requirements: 1. **Identify the Sets of Numbers:** - (1) Determine which set of numbers relates to the manufacturer and which to the merchandiser. - (2) Prepare the current asset section for each company based on this information. ### Detailed Steps to Complete: #### Step 1: Identify the Companies - **Company 1** is likely the merchandiser (Sunrise Foods) as it has a Merchandise inventory listed. - **Company 2** is likely the manufacturer (Rayzer Skis Mfg.) as it shows Raw materials inventory, Work in process inventory, and Finished goods inventory. #### Step 2: Current Asset Section Preparation for Company 2 - Based on the data provided, prepare the current asset section for Rayzer Skis Mfg. (Company 2). **Template for Company 2 (Rayzer Skis Mfg.):** ``` Company 2 Rayzer Skis Mfg. Balance Sheet—Current Asset Section December 31, 2017 | Account | Amount | |--------------------------|---------| | Cash | $5,000 | | Raw materials inventory | $42,000 | | Work in process inventory| $30,000 | | Finished goods inventory | $50,000 | | Accounts receivable, net | $75,000 | | Prepaid expenses | $900 | | | | **Total current assets** | [Sum of above] | ``` - **
Transcribed Image Text:**Understanding Current Assets: Manufacturer vs. Merchandiser** **Overview:** 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. **Current Assets Table:** | Account | Company 1 | Company 2 | |--------------------------|-----------|-----------| | Cash | $7,000 | $5,000 | | Raw materials inventory | — | 42,000 | | Merchandise inventory | 45,000 | — | | Work in process inventory| — | 30,000 | | Finished goods inventory | — | 50,000 | | Accounts receivable, net | 62,000 | 75,000 | | Prepaid expenses | 1,500 | 900 | ### Requirements: 1. **Identify the Sets of Numbers:** - (1) Determine which set of numbers relates to the manufacturer and which to the merchandiser. - (2) Prepare the current asset section for each company based on this information. ### Detailed Steps to Complete: #### Step 1: Identify the Companies - **Company 1** is likely the merchandiser (Sunrise Foods) as it has a Merchandise inventory listed. - **Company 2** is likely the manufacturer (Rayzer Skis Mfg.) as it shows Raw materials inventory, Work in process inventory, and Finished goods inventory. #### Step 2: Current Asset Section Preparation for Company 2 - Based on the data provided, prepare the current asset section for Rayzer Skis Mfg. (Company 2). **Template for Company 2 (Rayzer Skis Mfg.):** ``` Company 2 Rayzer Skis Mfg. Balance Sheet—Current Asset Section December 31, 2017 | Account | Amount | |--------------------------|---------| | Cash | $5,000 | | Raw materials inventory | $42,000 | | Work in process inventory| $30,000 | | Finished goods inventory | $50,000 | | Accounts receivable, net | $75,000 | | Prepaid expenses | $900 | | | | **Total current assets** | [Sum of above] | ``` - **
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