Walter Products and Sandburg Industries Report the Following Information at December

question 134

Essay

Walter Products and Sandburg Industries report the following information at December 31:
WALTER SANDBURG
$$\begin{array} { l | l | l } \hline \text { Accounts Receivable } & \$ 41,000 & \$ 68,000 \\\hline \text { Cash } & 6,000 & 7,000 \\\hline \text { Finished Goods Inventory } & & 25,000 \\\hline \text { Work in Process Inventory } & & 40,000 \\\hline \text { Merchandise Inventory } & 48,000 & \\\hline \text { Prepaid Expenses } & 1,000 & 2,000 \\\hline \text { Raw Materials Inventory } & & 21,000\end{array}$$ Required:
(a) Which company is a manufacturer? Explain.
(b) Prepare the Current Asset Section of the Balance Sheet for the manufacturer.

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Definitions:

Human Chorionic Gonadotropin

A hormone produced during pregnancy by the placenta, often used in pregnancy tests and also in fertility treatments.

Ovulating

The phase in the menstrual cycle when an ovary releases an egg, making it available for fertilization.

Sexual Intercourse

Physical activity involving penetration of the penis into the vagina, anus, or mouth of another to achieve sexual pleasure or reproduction.

Conceptus

The embryo or fetus and the associated membranes and structures from conception until birth.