Current assets for two different companies at calendar year-end 2011 are listed here. One is a manufacturer, Roller Blades Mfg., and the other, Sunny 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.

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Account Company I Company 2 $ 9,000 $ 7,000 Cash Raw materials inventory 44,000 Merchandise inventory . 47,000 Goods in process inventory 32,000 Finished goods inventory 52,000 Accounts receivable, net 64,000 77,000 Prepaid expenses 3,500 700