The Income Statements and Balance Sheets of Service,retailing,and Manufacturing Businesses

Essay

The income statements and balance sheets of service,retailing,and manufacturing businesses tend to differ.
Required:
A.Retailers and manufacturers will disclose a cost-of-goods-sold figure because both of these entities sell goods.Service businesses,in contrast,do not given that such firms provide services.
A.Which of these businesses will disclose a cost-of-goods-sold figure on the income statement? Why?
B.A retailer will typically disclose inventories as one-line item entitled merchandise inventories.Manufacturers,on the other hand,carry three different types of inventories: raw materials,work in process,and finished goods.
B.Briefly describe the difference between a retailing firm and manufacturer's disclosure of inventories on the balance sheet.