Final answer:
The balance sheet of a merchandiser includes 'c. Merchandise Inventory' as the correct entry under current assets, indicating the ready-to-sell products they have in stock. It's directly tied to the company's cash flow and profitability.
Step-by-step explanation:
Among the options provided for what would be included in the balance sheet of a merchandiser, the correct answer is c. Merchandise Inventory. Merchandise inventory refers to the products that a merchandiser has available for sale to customers. Finished goods inventory, raw materials inventory, and work in process inventory are terms more commonly associated with manufacturing companies. Merchandisers typically purchase finished products for resale, which is why their inventories consist solely of merchandise inventory.
On a balance sheet, merchandise inventory will be listed under current assets, illustrating the value of products that are ready for sale. It's important to monitor this inventory closely as it directly affects the cash flow and profitability of the business. The amount of merchandise inventory can fluctuate, often decreasing when business is better than expected or increasing when sales are slower.