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Unformatted text preview: !"# % &'!() !*+,- !*.+- !*./ % 01#! 023456270 89:;<=> !*+, ?:@A=@A :B BC@D@ECD< FADA=>=@AF D@G 9=H:9AF PROBLEM 2-37 (20 MINUTES) 1. 1. Income statement 2. Balance sheet 3. Income statement 4. Income statement 5. Cost-of-goods-manufactured schedule 6. Income statement 7. Cost-of-goods-manufactured schedule 8. Cost of-goods-manufactured schedule 9. Balance sheet, cost-of-goods-manufactured schedule 10. Income statement 11. Income statement 2. The asset that differs among these businesses is inventory. Service businesses typically carry no (or very little) inventory. Retailers and wholesalers normally stock considerable inventory. Manufacturers also carry significant inventories, typically subdivided into three categories: raw material, work in process, and finished goods. 3. The income statements of service business normally have separate sections for operating revenues, operating expenses, and other income (expenses). In contrast, those of retailers, wholesalers, and manufacturers disclose sales revenue, followed immediately by cost of goods sold and gross margin. Operating expenses are listed next followed by other income (expenses). 4. The basic difference falls in the area of inventory. Traditional manufacturers produce finished goods, which are then placed in warehouses awaiting sale. In contrast, with a direct-sales, mass-customization firm, the receipt of a sales order triggers the manufacturing process as well...
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- Spring '08