Exercise 14-11 (Algo) Balance sheet identification and preparation LO P1

End-of-year current assets for two different companies follow. One is a manufacturer, Rayzer Skis Manufacturing, and the other, Sunrise Foods, is a merchandiser.

Account	Company 1	Company 2
Cash	$ 7,000	$ 5,000
Merchandise inventory	41,500
Raw materials inventory		38,500
Work in process inventory		28,000
Finished goods inventory		48,000
Accounts receivable, net	65,000	77,000
Prepaid expenses	4,500	900

1. Identify which set of numbers relates to the manufacturer and which to the merchandiser.

2a. & 2b. Prepare the current asset section of the balance sheet at December 31 for each company.