Which one of the following is true concerning manufacturing and merchandising companies' inventories on the balance sheet? A merchandiser reports its inventories as a current asset, and a manufacturer reports inventories as an expense. Manufacturer's include raw materials, work in process, finished goods, and cost of goods sold on the balance sheet, while merchandisers include only merchandise Inventory and cost of goods sold on their balance sheet. Finished goods is to a manufacturer what merchandise inventory is to a merchandiser Raw materials is to a manufacturer what merchandise Inventory is to a merchandiser