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 Sheet–Current 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 Sheet–Current Asset Section
December 31, 2017
Total current assets

If a seller prepaid the taxes of $4,400 and the closing is set for may 19, using the 12 month/30 day method what will the buyer owe the seller as prorated taxes?

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.

Who is not spending wisely? erika goes shopping and saves her receipts. she totals how much she spent and writes it down. mia needs to buy a new pair of shoes because she joined the soccer team. she looks at newspaper ads to find the best price. lauren has been thinking about getting a puppy for a long time. she walks by the pet store at the mall and decides to get a puppy. erin makes a purchase online using a credit card. she knows that she can pay the entire bill when it arrives.