Identify type of company from balance sheets (Learning Objective 1)

The current asset sections of the balance sheets of three companies follow. Which company is a service company? Which is a merchandiser? Which is a manufacturer? How can you tell?

Transcribed Image Text:

X-Treme Y-Not? Cash $ 2,500 Cash... Accounts receivable.... 5,500 Zesto $3,000 Cash.............. $ 2,000 Accounts Accounts receivable....... 6,000 receivable.... 5,000 Prepaid Raw materials Inventory....... 8,000 expenses. 500 inventory..... 1,000 Prepaid Work in process expenses...... Total $16,300 300 Total $9,500 inventory..... 800 Finished goods inventory..... 4,000 Total $12,800