Answer / Explanation:
(1) Cash balance of $937,790. Only the checking account balance should be reported as cash. The certificates of deposit of $1,444,000 should be reported as a temporary investment, the cash advance to subsidiary of $983,730 should be reported as a receivable, and the utility deposit of $188 should be identified as a receivable from the gas company.
(2) Cash balance is $584,650 computed as follows:
Checking account balance $514, 570
Overdraft (18,300)
Petty cash 308
Coin and currency 1,370
$534, 548
Cash held in a bond sinking fund is restricted. Assuming that the bonds are non current, the restricted cash is also reported as non current.
(3) Cash balance is $617, 620 computed as follows:
Checking account balance $617, 620
Certified check from customer 9, 640
$627, 260
The post dated check of $13,030 should be reported as a receivable. Cash restricted due to compensating balance should be described in a note indicating the type of arrangement and amount. Postage stamps on hand are reported as part of office supplies inventory or prepaid expenses.
(4) Checking account balance $46,220
Money market mutual fund 52, $790
$99, 010
The NSF check received from customer should be reported as a receivable.
(5) Cash balance is $700,900 computed as follows:
Checking account balance $716,200
Cash advance received from customer 937
$717, 137
Cash restricted for future plant expansion of $517,960 should be reported as a non current asset. Short-term treasury bills of $190,700 should be reported as a temporary investment. Cash advance received from customer of $937 should also be reported as a liability; cash advance of $7,840 to company executive should be reported as a receivable; refundable deposit of $29,700 paid to federal government should be reported as a receivable.
.Therefore,initially Bill diner's opportunity cost of an additional hot dog is 1.4 units of burger.
approximately.Hence,Bill's diner is willing to sacrifice approximately 0.385 units of burger to consume an additional unit of hot dog.
units of burger.Notice,that here the opportunity cost of additional hot dog decreased from 1.4 units of burger to 0.385 units of burger as Bill's diner changed the consumption combination of both burgers and hot dogs.