Metropolis Industries invested its excess cash in the following instruments during December 2014: Certificate of deposit, due
Question:
Metropolis Industries invested its excess cash in the following instruments during December 2014:
Certificate of deposit, due January 31, 2015 ....................................................................................$ 35,000
Certificate of deposit, due June 30, 2015 .............................................................................................95,000
Investment in City of Elm bonds, due May 1, 2016 .............................................................................15,000
Investment in Quantum Data stock ......................................................................................................66,000
Money market fund ..............................................................................................................................105,000
90-day Treasury bills ...............................................................................................................................75,000
Treasury note, due December 1, 2015 ...............................................................................................200,000
Required
Determine the amount of cash equivalents that should be combined with cash on the company’s balance sheet at December 31, 2014, and for purposes of preparing a statement of cash flows for the year ended December 31, 2014.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Financial Accounting The Impact on Decision Makers
ISBN: 978-1285182964
9th edition
Authors: Gary A. Porter, Curtis L. Norton