This case is based on the Foot Locker, Inc. s consolidated balance sheets, consolidated statements of cash flows, and Footnote 6 of its financial statements in Appendix B at the end of this book.
1. What securities are included in Foot Lockers Short-term investments? What type of securities are they?
2. Make a T-account for Short-term investments. Record $249 as the balance in the account as of the end of 2006. Using the information in the investments section of the Consolidated Statement of Cash Flows, record the cash purchases and sales of short-term investments during 2007. Why doesn’t the ending balance equal the amount shown on the balance sheet as of the end of 2007?