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serious [3.7K]
3 years ago
13

Lori's Company has the following​ items: cash in a checking​ account, $ 6 comma 000​; cash in a savings​ account, $ 9 comma 000​

; highminusgrade government securities due in one month​ (purchased last​ month), $ 3 comma 586​; accounts​ receivable, $3,000. How much should appear as Cash and Cash Equivalents on the balance​ sheet?
Business
2 answers:
gtnhenbr [62]3 years ago
6 0

Answer:

$18,586

Explanation:

Cash and cash equivalent are monetary instruments that are already in liquid form (that is cash) or will be converted to cash within 3 months.

Account receivables are an element of current assets ( assets to be realized in 12 months or less) and not part of cash and cash equivalents.

Hence amount to be reported as Cash and Cash equivalent in balance sheet

=$6,000 + $9,000 + $3,586

= $18,586

zysi [14]3 years ago
3 0

Answer:

18,586.

Explanation:

In-order to get understanding of Cash and Cash Equivalents, lets break-up this account and see what does it mean.

<u>Cash</u>

It includes the paper money that businesses have on hand, coins, and demand deposits. Usually Checking Accounts and Savings Accounts are demand deposits and you can easily withdraw your money, so these are termed as Cash.

<u>Cash Equivalents</u>

These are marketable securities that mature in a period of less than three months (90 days). Any other financial security that can be easily converted into cash fall under this category.

Looking at the scope of Cash and Cash Equivalents, the amount that should appear on the balance sheet is  $18,586 (6,000 + 9,000 + 3,586).

Note: Sometimes there is a withdrawal restriction on Saving Accounts and you can not withdraw your money from it before six months, if that is the case then it should not be included in Cash and Cash Equivalents.

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Explanation:

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= (1 + nominal interest rate ÷ periods)^ number of period - 1

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4 years ago
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2 years ago
One recurring problem in supply chain management is when information about the demand for a product gets distorted as it passes
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Answer: Bullwhip Effect

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3 years ago
At the beginning of year 1, Looby Corp. purchases equipment for $100,000. The equipment has a residual value of $20,000 and an e
ANEK [815]

Answer:

Accumulated Depreciation at the end of year  =  $16,000

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<em>An equal amount is charged as annual depreciation over the life of the asset. The annual depreciation is calculated as follows:</em>

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The "market clearing price" is most closely associated with
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The market clearing price is the price that balances the amount buyers want to buy with the amount sellers want to sell. This price balances the amounts demanded and supplied. The "market clearing price" is most closely associated with market equilibrium, because it exists when a market is clear of shortage and surplus, or is in equilibrium, when the demand curve and supply curve intersect.

4 0
3 years ago
Read 2 more answers
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