Attengk in Progress Crane Company has recorded the following items in its financial recs. Cash in bank Cash in plant expansion fund Cash on hand Highly liquid investments Petty cash Receivables from customers Stock investments $51,200 101,200 12,200 38,700 520 93,300 68,500 The highly liquid investments had maturities of 3 months or less when they were purchased. The stock investments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years. What amount should Crane report as "Cash and cash equivalents' on its balance sheet?
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- Weis Markets accumulates large amounts of excess cash throughout the year. It typicallyinvests these funds in marketable securities until they are needed. The company’s most recentfinancial statements revealed a nearly $14 million unrealized gain on short-term investments.Footnotes to the financial statements disclosed that Weis reports its short-term investments atfair value.a. Explain the meaning of the company’s unrealized gain on short-term investments.b. How does the unrealized gain impact the company’s financial statements?c. Is the unrealized gain included in the computation of the company’s taxable income?Explain.d. Evaluate fair value accounting from the perspective of the company’s creditors.Corp. had the following balances at December 31, 2002: Cash in checking account P 420,000 Cash in money market account 300,000 Treasury bill purchased 12/01/02, maturing 2/28/03 960,000 Treasury bond purchased 3/01/01, maturing 2/28/03 600,000 Bell’s policy is to treat as cash equivalents all highly liquid investments with maturity of three months or less when purchased. What amount should Bell report as cash and cash equivalents in its December 31, 2002 balance sheet? 2,280,000 b. 1,680,000 c. 720,000 d. 1,380,000Swifty Corp. has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in order to obtain additional funds for expansion: SWIFTY CORP.Statement of Financial PositionFor the Year Ended December 31, 2020 Current assets Cash (net of bank overdraft of $35,000) $ 290,000 Accounts receivable (net) 510,000 Inventory at the lower of cost and net realizable value 551,000 FV-NI investments (at cost—fair value $180,000) 150,000 Property, plant, and equipment Buildings (net) 720,000 Equipment (net) 180,000 Land held for future use 335,000 Intangible assets Goodwill 90,000 Investment in bonds to collect cash flows, at amortized cost 97,000 Prepaid expenses 22,000 Current liabilities Accounts payable 225,000 Notes payable (due next year) 295,000…
- Calculate the amount of liquidity a bank can generate from selling its AFS portfolio using the following information:USTs held in AFS = $92,053,000Securities held in HTM = $13,500,000Loans = $69,680,000Settlement occurs on T+2Maturing on T+1 = $16,000,000Haircut = 5%USTs in AFS used as collateral for RP liabilities (i.e./ "encumbered") = $19,740,000 $56,313,000 $53,497,350 $52,697,350 $51,710,350Use the following accounts;CashBankShort-term investmentsLoss on sale of short-term investmentForeign exchange gainForeign exchange lossCapitalGain on sale of short-term investment RA established his own company, r@ktas Co. The following transactions are the events thatoccurred during December 2018, the company’s first month: Date12/1 The owner invested $ 200,000 cash for capital.12/5 r@ktas Co., opened deposit account on Don’t Trust Bank and put 2.000 Euro(Exchange rate was 1 Euro= 1,5 Dollar)12/10 The Company purchased short-term investment with cash for $2,500.12/18 The Company sold short-term investment with cash for $2.000Note:• Exchange rate was 1 Euro= 1,4 Dollar at the end of the period. Requirements:1- Give the journal entry for each transaction.2- Post each transaction to T accounts.While reviewing the March 31, 2022, balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,057. Its most recent bank money market statement shows that the funds are earning an annualized return of 0.75%. S. Rey decides to make several investments with the desire to earn a higher return on the idle cash balance. Accordingly, in April 2022, Business Solutions makes the following investments in trading securities. April 16 Purchases Johnson & Johnson bonds for $10,000. April 30 Purchases Starbucks notes for $4,400. On June 30, 2022, the fair value of the Johnson & Johnson bonds is $12,000 and the Starbucks notes is $3,800. Required:1. Prepare journal entries to record the April purchases of trading securities by Business Solutions.2. On June 30, 2022, prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities.
- CLASSIFY EACH OF THE FOLLOING AS ONE OF THE FOLLOWING: a) cash b) cash equivalent c) other current asset d) noncurrent asset e) current liability f) long-term liability aa) perosnal check from customer bb) cash held in a fund, the fund is expected to accrue interst for three years cc) one year treasury bill purchased two months before maturity date dd) compensating balance held aginst long term debt, where funds are legally restricted from withdrawal ee) negative cash balance due to outstanding checks exceeding cahs on deposit (this is the only accout with this bank) ff) travel advance of cash to an employee for business travel gg) deposit in a money market fund with a two month maturity date hh) cash depsoited in a 5 year bank sinking fundThe following are the data acquired from the financial statement of the firm: Cash on Hand …........ 1,500,000 Outstanding Fund Liabilities… 600,000 Assets Held by the Fund …800,000 Shares Outstanding …500,000 If the current price of the stock in the market is at $4.25, how much would be the upside/downside?A company has a 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 2 3 4 5 6 7 Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$405 $134 $134 $134 $134 $134 $134 $0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: $ fill in the blank 2 Project B: $ fill in the blank 3 What is each project's IRR? Round your answer to two decimal places. Project A: fill in the blank 4% Project B: fill in the blank 5% What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations.…
- A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 2 3 4 5 6 7 Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$405 $132 $132 $132 $132 $132 $132 $0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: $ fill in the blank 2 Project B: $ fill in the blank 3 What is each project's IRR? Round your answer to two decimal places. Project A: fill in the blank 4% Project B: fill in the blank 5% What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations.…The following information applies to Old Blues Advisors, a hedge fund: $288 million in assets under management (AUM) as of prior year-end 2% management fee (based on year-end AUM) 20% incentive fee calculated: net of management fee using a 5% soft hurdle rate using a high-water mark (high-water mark is $357 million) Current year fund return is 25% What is the total fee earned by Old Blues Advisorsin the current year?vanhoe Company accumulates the following data concerning a proposed capital investment: cash cost \$212.060. net annual cash flows $43,000, and present value factor of cash inflows for 10 years is 5.22 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg-45 or parentheses eg(45).) Determine the net present value, and indicate whether the investment should be made. dont give answer in image thnku