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bearhunter [10]
3 years ago
15

The following are held by Smite Co.:Cash in checking account $20,000Cash in bond sinking fund account 30,000Postdated check from

customer dated one month from balance sheet date 250Petty cash 200Commercial paper (matures in two months) 7,000Certificate of deposit (matures in six months 5,000What amount should be reported as cash and cash equivalents on Smite’s balance sheet?​A. $27,200B. $27,450C. $32,200D. $57,200
Business
1 answer:
12345 [234]3 years ago
7 0

Answer:

A. $27,200

Explanation:

The computation of the cash and cash equivalents reported is shown below:

= Cash in checking account + Petty cash + Commercial paper

= $20,000 + $200 + $7,000

= $27,200

We only added these three items which are shown above as they include cash related items

All other information which is given is not relevant. Hence, ignored it

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3 years ago
In determining basic earnings per share, dividends on nonconvertible cumulative preferred stock should be:a. deducted from net i
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Answer:

b. deducted from net income whether declared or not

Explanation:

The formula to compute the basic earning per share is shown below:

Basic earning per share = (Net income - preferred stock dividend) ÷ (weighted average of outstanding shares)

In the case of the non- convertible cumulative preferred stock, the dividend should be paid whether the business earns profit or loss. If the business does not earn any profit during a particular year, in that period the dividend amount is carried forward to next year.

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3 years ago
Vande Velde Company made three investments during 2017. Where will Vande Velde report these investments in the fair value hierar
Debora [2.8K]

Answer:

a. level 3

b.level 1

c. level 2

Explanation:

Vande Velde Company made three investments during 2017. Where will Vande Velde report these investments in the fair value hierarchy?1. It purchased 1,000 shares of Sastre Company, a start-up company. Vande Velde made the investment based on valuation estimates from an internally developed model.2. It purchased 2,000 shares of GE stock, which trades on the NYSE. 3. It invested $10,000 in local development authority bonds. Although these bonds do not trade on an active market, their value closely tracks movements in U.S. Treasury bond.

The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), and the lowest priority to unobservable inputs (Level 3) while Level 2 assets are financial assets and liabilities that are neither easy or overly complex to value.Going by the explanation the investment will be given hierarchy 3, 2,1

if Van verde purchased shares on the New York stock Exchange , then the percentage in price over time is more than the other two options . In stock purchase, investors can realised more profit on their  stocks than bond which can give like 10-15% on the initial cash outlay. The only caveat is that Stocks is a little bit risky and could be volatile owing to price fluctuations ,and the forces of demand and supply.

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There are two common measures of economic growth: (1) increases in real GDP over some period of time and (2) increases in real G
Komok [63]

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