
Manufacturer is the person who procures the goods through a process; convert the raw material into finished goods and then sale the converted goods is known as manufacturers.
Merchandiser is the person who procures the goods and sale them with any process i.e. as it is is known as merchandiser.
In merchandise, the inventory is in one form only i.e. merchandise inventory
In manufacturing, generally the inventory is in three forms; Raw material, work in progress and finished goods.
To determine:
In the given question, data related to
1. Which set of numbers relate to manufacturer and which set relates to merchandiser
2. Preparation of current asset section for these 2 companies and why the current asset section is different for these 2 companies.

Want to see the full answer?
Check out a sample textbook solution
Chapter 18 Solutions
Fundamental Accounting Principles
- Option? General accounting questionarrow_forwardBlue Ridge Logistics acquired a truck for $75,000 at the beginning of the year. The truck has a useful life of 8 years and an estimated salvage value of $7,000. Compute the annual depreciation expense using the straight-line method.arrow_forwardDo fast answer of this accounting questionsarrow_forward
- Financial accountingarrow_forwardWW Office Solution simplemented a new supply requisition system. Departments must submit requests by Thursday for next week, maintain minimum 20% buffer stock, and obtain supervisor approval for urgent orders. From 85 total requisitions last month, 65 followed timeline, 72 maintained proper buffer, and 58 met both conditions. What is the compliance rate?arrow_forwardOn January 1, 2013, R Corporation leased equipment to Hela Company. The lease term is 9 years. The first payment of $452,000 was made on January 1, 2013. Remaining payments are made on December 31 each year, beginning with December 31, 2013. The equipment cost R Corporation $2,457,400. The present value of the minimum lease payments is$2,697,400. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 12%, what will be the balance reported as a liability by Hela in the December 31, 2014, balance sheet?arrow_forward
- Please help mearrow_forwardA firm currently has a 40-day cash cycle. Assume that the firm changes its operations such that it decreases its receivables period by 5 days, increases its inventory period by 3 days, and decreases its payables period by 2 days. What will the length of the cash cycle be after these changes?arrow_forwardAnsarrow_forward
- Magnus Enterprises has net sales of $1,020,000, net income of $74,500, average current assets of $52,000, average fixed assets of $178,500, and average total assets of $230,500. What is Magnus Enterprises' return on assets?arrow_forwardWhat is net income using accural accounting?arrow_forwardChoice correct answer with accounting questionarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





