Hansen Inc made two purchases during December One was a $10,000 Treasury bill that matures in 60 days from the date of purchase The other was a $20,000 investment in Motorola common stock that will be held indefinitely How should each purchase be treated for purposes of preparing a statement of cas...

A 60day Treasury bill would be classified as a cash equivalent and ...

Hansen Inc. made two purchases during December. One was a $10,000 Treasury bill that matures in 60

Question:

Hansen Inc. made two purchases during December. One was a $10,000 Treasury bill that matures in 60 days from the date of purchase. The other was a $20,000 investment in Motorola that will be held indefinitely. How should each purchase be treated for purposes of preparing a statement of cash flows?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...