Current assets for two different companies at calendar year-end 2011 are listed here. One is a…

 
   

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Current assets for two different companies at calendar year-end 2011 are listed here. One is a manufacturer, Roller Blades Mfg., and the other, Sunny Foods, is a grocery distribution company. (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. Discuss why the current asset section for these two companies is different.

Account                                                                Company 1                                         Company 2

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . .                       $ 9,000                                                 $ 7,000

Raw materials inventory . . . . . . . . . . .                      —                                                           44,000

Merchandise inventory . . . . . . . . . . . . .                   47,000                                                  —

Goods in process inventory . . . . . . . .                       —                                                           32,000

Finished goods inventory . . . . . . . . . . .                    —                                                           52,000

Accounts receivable, net . . . . . . . . . . .                     64,000                                                  77,000

Prepaid expenses . . . . . . . . . . . . . . . . .                     3,500                                                     700