Please solve as soon as possible. IThe following information applies to the ques
ID: 2425700 • Letter: P
Question
Please solve as soon as possible.
IThe following information applies to the questions displayed below. Current assets for two different companies at fiscal year-end 2015 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 13,000 11,000 Cash Raw materials inventory 37.125 40,125 Merchandise inventory Work in process inventory 27.000 47,000 Finished goods inventory Accounts receivable, net 60.000 79.000 3,000 Prepaid expenses 600Explanation / Answer
1 a) Company 2
1 b) Company 1
Company 1
Sunrise Foods
Balance Sheet -Current Asset Section
December 31,2015
Cash
13,000
Accounts Receivable,net
60,000
Inventories:
Merchandise Inventory
40,125
Work-in-process (WIP)
Raw materials
40,125
Prepaid insurance
3,000
Total current assets
116,125
Company 2
Rayzer skis Mfg.
Balance Sheet -Current Asset Section
December 31,2015
Cash
11,000
Accounts Receivable,net
79,000
Inventories:
Finished goods
47,000
Work-in-process (WIP)
27,000
Raw materials
37,125
111,125
Prepaid insurance
600
Total current assets
201,725
Company 1
Sunrise Foods
Balance Sheet -Current Asset Section
December 31,2015
Cash
13,000
Accounts Receivable,net
60,000
Inventories:
Merchandise Inventory
40,125
Work-in-process (WIP)
Raw materials
40,125
Prepaid insurance
3,000
Total current assets
116,125