Cash is the real money that we have while cash equivalents are instruments that can be turn to cash quickly. They are very liquid.
Treasury bills are cash equivalents. They are very liquid and can be converted into cash quickly. They are instruments in the money market.
Going by this above explanation, the Cash and Cash Equivalents that will be reported on the balance sheet are:
Cash --------------------------------------- $1,900
Treasury bills purchased--------------$500
Total-------------------------------------------<u>$2,400</u>
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$2,400 will be reported as Cash and Cash Equivalents on the balance sheet.
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Answer:
$75,000
Explanation:
Given that,
Unit selling price = $50
Unit variable costs = $35
Fixed costs = $125,000
current sales = 10,000 units
Contribution margin per unit:
= Selling price per unit - unit variable costs
= $50 - $35
= $15
Change in Operating income if sales increase by 5,000 units:
= Increase in sales × Contribution margin per unit
= 5,000 units × $15
= $75,000
