Walker Company has recorded the following items in its financial records:

The highly liquid investments had maturities of three months or less when they were purchased. The stock investments will be sold in the next six to 12 months. The plant expansion project will begin in three years.

Instructions
a. What amount should Walker report as “Cash and cash equivalents” on its balance sheet?
b. Where should the items not included in part (a) be reported on the balance sheet?

Transcribed Image Text:

Cash in bank Cash in plant expansion fund Cash on hand Highly liquid investments Petty cash Receivables from customers Investments in shares $ 35,000 100,000 8,500 25,000 200 68,000 60,000