Current assets for two different companies at fiscal year-end 2015 are listed here. One is a manufacturer,

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Current assets for two different companies at fiscal year-end 2015 are listed here. One is a manufacturer, Rayzer Skis Mfg., and the other, Sunrise Foods, is a grocery distribution company.
(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. Discuss why the current asset section for these two companies is different.
________________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
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Managerial Accounting

ISBN: 978-0078025600

5th edition

Authors: John Wild, Ken Shaw

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