Van Patten, Inc , made two purchases during September One was a $25,000 certificate of deposit that matures in 90 days The other was a $50,000 investment in Microsoft common stock that will be held indefinitely Required How should each of these transactions be treated on the statement of cash flows

Question: Van Patten, Inc., made two purchases during September. One was a $25,000 certificate of deposit that matures in 90 days. The other was a $50,000

Van Patten, Inc., made two purchases during September. One was a $25,000 certificate of deposit that matures in 90 days. The other was a $50,000 investment in Microsoft that will be held indefinitely.

Required
How should each of these transactions be treated on the statement of cash flows?

Step by Step Solution

★★★★★

3.27 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The 25000 certificate of deposit is a cash equi... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

420-B-M-A-S-C-F (3193).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2013: From the income statement: Revenues: $240,000 Cost of goods sold:...

Shown below is selected information from the financial records of Merris Corporation as of December 31, 2019: Inventory $165,000 Cash purchase of equipment $29,000 Cash collected fram customers...

You invest $1,000 in a certificate of deposit that matures after 10 years and pays 5 percent interest, which is compounded annually until the certificate matures. a. How much interest will you earn...

is used? Impact of Cash and Stock Dividends LOL.3 The account balances for the noncash current assets and current liabilities of Abraham Music Company are as follows: December 31 2011 2012 Dividends...

MGMT 640 Midterm Exam Ques. 1) Which of the following is not an advantage of the corporate form of business organization? a. Sell debt or equity in public capital markets b. Owners have limited...

Hi. I need Chapter 11 part 1-4 Let me know. Thanks! (it wont letme add more than $8, but I will give $12+ tip) Personal Finance, Fifth Edition by Jeff Madura BUILDING YOUR OWN FINANCIAL PLAN WORKBOOK...

1. Describe the composition of your corporation's contributed capital [Hint: contributed capital includes common and preferred stock plus any paid in capital in excess of par (or stated value)]. 2....

\begin{tabular}{|c|c|c|c|} \hline 5. & 9/03/23 & & \begin{tabular}{l} Purchased a new reglster/computer system that cost $3,600 from \\ Office Mart for use in the business. Ms. Boone signed at...

I need help with writhing a financial statement analysis report about Company Sprint Airline. I have attached the documents including the overview of the project and the template of it and example of...

Please answer all of the following questions. Chapter 4 questions Question 1 The Accounting Cycle - How do the different steps affect the financial statements? What is the effect on the financial...

Prepare a statement of cash flow using the indirect method. Compare financial statement data as follows: In 2009 the company reported net income as follows Sales ............... 275 Cost of Goods...

Describe that How to Integrate Character and Cultivate Social, Emotional, and Moral Development and also describe its reflection and discussion.

You had your employtes have worked overtime this month to produce in reoord monthly prolle This is thes ins reat achieved by your firm. Economio rents provide strong incentives for innovation even in...

What two simplifying assumptions are made in the JLT framework? (Hint: One deals with default-risk-free interest rates and the other deals with recovery.)

Cuddly Critters, Inc., manufactures plush toys in a facility in Cleveland, Ohio. Recently, the company designed a group of collectible resin figurines to go with the plush toy line. Management is...

Gavin Martin, the general manager of Oregano Software, must decide when to release the new version of Oreganos spreadsheet package, Easyspread 2.0. Development of Easyspread 2.0 is complete; however,...

Jason Wu operates Exclusive Limousines, a fleet of 10 limousines used for weddings, proms, and business events in Washington, D. C. Wu charges customers a flat fee of $ 250 per car taken on contract...

Suppose you can invest in fund R&R (named after Risk and Return), which manages a portfolio with an expected return of 15% and a standard deviation of 20%. At the same time, the T-bill rate is 8%....

Q4 Question 4 (10 marks) a) What is the effective annual cost of credit terms of 1/10 net 30, if the firm stretches the account payable to 40 days? (2 marks) b) Bercraft Ltd has an average accounts...

Suppose a ten-year, $1,000 bond with an 8% coupon rate and semi-annual coupons is trading for $1,034.74 A. What is the bond's yield to maturity(expressed an APR with semi-annual compounding)? B. If...