Question

Question 1 1 pts Here are a variety of accounts and their balances. Accounts R/E 2300 C/S 500 Investments 400 100 100 Unearned rev Allowance for doubtful accts Inventory US T-bills 300 600 Acc Depreciation 200 Goodwill 400 A/P 400 300 |A/R Cash Equipment 1000 600 Also, note the following: Half the cash is reserved for building a store in two years One third of the US t-bills have 3 month maturities, a third have 7 months, the rest 2 years Half the investments will be sold this year, the rest will be sold in 3 years a. What is the balance in cash & cash equivalents?

Answer 1

Solution: 1
	Calculation of Cash and Cash Equivalents
	Cash	$                 1,000
	UT T - Bills (1/3 of $ 600 = $ 600 / 3)	$                     200
	Total of Cash & Cash Equivalents	$                 1,200
Solution: 2
		AMOUNT	AMOUNT
	CURRENT ASSETS:
	Cash		$                1,000
	A/R	$                     300
	Less: Allowance for Doubtfull Accouts	$                     100
	Net Account Receivable		$                   200
	Inventory		$                   300
	US T -Bills ($ 600 X 2/3)		$                   400
	Total Current Assets		$                1,900
Solution: 3
	CURRENT ASSETS:
	Cash		$                1,000
	A/R	$                     300
	Less: Allowance for Doubtfull Accouts	$                     100
	Net Account Receivable		$                   200
	Inventory		$                   300
	US T -Bills ($ 600 X 2/3)		$                   400
	Total Current Assets (A)		$                1,900
	INVESTMENT & OTHERS
	US T -Bills ($ 600 X 1/3)	$                     200
	Investments	$                     400
	Total (B)		$                   600
	PROPERTY PLANT & EQUIPMENT
	Goodwill		$                   400
	Equipment	$                     600
	Less: Accumulated Depreciation - Equipment	$                     200	$                   400
	Total Property Plant & Equipment ('C)		$                   800
	Total of Assets (A+B+C)		$                3,300