Consider the following selected amounts and account balances of

: Monarchs

$1$

Show how this company reports current assets on the balance sheet. Not all the data are used. Is

a service

company,

a

merchandiser,

or a

manufacturer?

How do you

know?

Monarchs

Show how

reports current assets on the balance sheet. Monarchs

Monarchs

Balance Sheet $($Partial$)$

Current assets:

$(1)$

$(2)$

Inventories:

$(3)$

$(4)$

$(5)$

$(6)$

$(7)$

Total current assets

Is

a service

company,

a

merchandiser,

or a

manufacturer?

How do you

know? Monarchs

is a

$(8)$

as shown by the

$(9)$

on the balance sheet. Monarchs

Cost of goods sold

$.............$

$113,000$

$

Prepaid expenses

$...........$

$8,200$

$

Direct labour

$..................$

$48,000$

Marketing expense

$...........$

$37,000$

Direct materials used

$...........$

$26,000$

Work in process inventory

$.....$

$42,000$

Accounts receivable

$............$

$87,000$

Manufacturing overhead

$......$

$28,000$

Cash

$........................$

$17,000$

Finished goods inventory

$......$

$68,000$

Cost of goods manufactured

$.....$

$99,000$

Raw materials inventory

$......$

$13,000$