Exercise 1-7 Balance sheet identification and preparation LO C4

Current assets for two different companies at fiscal year-end 2017 are listed here. One is a manufacturer, Rayzer Skis Mfg., and the other, Sunrise Foods, is a grocery distribution company.

Account	Company 1				Company 2
Cash		$	8,000			$	6,000
Raw materials inventory							39,875
Merchandise inventory			42,875
Work in process inventory							29,000
Finished goods inventory							49,000
Accounts receivable, net			56,000				73,000
Prepaid expenses			4,000				800

Required: (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.

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

Which of these company is manufacturer
Which of these company is a merchandiser

Prepare the current asset section for company 1 from this information.

Company 1
Sunrise Foods
Balance SheetCurrent Asset Section
December 31, 2017
Total current assets

Prepare the current asset section for company 2 from this information.

Company 2
Rayzer Skis Mfg.
Balance SheetCurrent Asset Section
December 31, 2017
Total current assets