Indentify type of company from balance sheets
The current asset sections of the balance sheets of three companies follow. Which company is a service company? Which is a merchandiser? Which is a manufacturer? How can you tell?
|
X Treme |
Y Not? |
Zesto |
|||
|
Cash |
$ 2,500 |
Cash |
$ 3,000 |
Cash |
$ 2,000 |
|
Accounts receivable |
5,500 |
Accounts receivable |
6,000 |
Accounts receivable |
5,000 |
|
Inventory |
8,000 |
Prepaid expenses |
500 |
Raw materials inventory |
1,000 |
|
Prepaid expenses |
300 |
Total |
$ 9,500 |
Work in process inventory |
800 |
|
Total |
$ 16,300 |
Finished goods inventor |
4,000 |
||
|
Total |
$ 12,800 |