What amount should Wynn report as "Cash and cash equivalents" on its balance sheet? E8-14 Wynn Company has recorded the following items in its financial records.Cash in bankCash in plant expansion fundCash on handHighly liquid investmentsPetty cashReceivables from customersStock investments$ 42,000100,00012,00034,00050089,00061,000The highly liquid investments had maturities of 3 months or less when they were pur-chased. The stock investments will be sold in the next 6 to 12 months. The plant expansionproject will begin in 3 years.Instructions(a) What amount should Wynn report as "Cash and cash equivalents" on its balancesheet?(b) Where should the items not included in part (a) be reported on the balance sheet?

Cash and cash equivalents is an important section of current assets in the balance sheet. It…

E8-14 Wynn Company has recorded the following items in its financial records. Cash in bank $ 42,000 100,000 Cash in plant expansion fund Cash on hand 12,000 34,000 Highly liquid investments Petty cash 500 Receivables from customers 89,000 Stock investments 61,000 The highly liquid investments had maturities of 3 months or less when they were pur- chased. The stock investments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years. Instructions (a) What amount should Wynn report as "Cash and cash equivalents" on its balance sheet? (b) Where should the items not included in part (a) be reported on the balance sheet?

E8-14 Wynn Company has recorded the following items in its financial records. Cash in bank $ 42,000 100,000 Cash in plant expansion fund Cash on hand 12,000 34,000 Highly liquid investments Petty cash 500 Receivables from customers 89,000 Stock investments 61,000 The highly liquid investments had maturities of 3 months or less when they were pur- chased. The stock investments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years. Instructions (a) What amount should Wynn report as "Cash and cash equivalents" on its balance sheet? (b) Where should the items not included in part (a) be reported on the balance sheet?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...

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Tidwell Company experienced the following during 20X1: a. Sold preferred stock for 480,000. b. Declared dividends of 150,000 payable on March 1, 20X2. c. Borrowed 575,000 from a bank on a 2-year note. d. Purchased 80,000 of its own common stock to hold as treasury stock. e. Repaid 5-year bonds issued for 400,000 that mature and are due in December. Required: Prepare the net cash from financing activities section of the statement of cash flows.
Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
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.
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. 1,380,000
The following footnote appeared in a recent financial statement of Westinghouse Electric :The Corporation considers all investment securities with a maturity of three months or lesswhen acquired to be cash equivalents. All cash and temporary investments are placed with high-credit-quality financial institutions, and the amount of credit exposure to any one fi-nancial institution is limited. At December 31, cash and cash equivalents include restricted funds of $42 million.a. Are the company’s cash equivalents debt or equity securities? How do you know? b. Explain what is meant by the statement that “the credit exposure to any one financial institu-tion is limited.” c. Explain what is meant by the term restricted funds used in the footnote.
The following totals are taken from the statement of financial position of Eden Company: Current Assets 350,000 Long-term Assets 800,000 Current Liabilities 240,000 Long-term Liabilities 270,000 Additional information: a. Cash of P38,000 has been placed in a fund for the retirement of long-term debt. The cash and long-term debt have been offset and are not reflected in the financial statements. b. Long-term assets include P50,000 in treasury shares. c. Cash of P14,000 has been set aside to pay taxes due. The cash and taxes payable have been offset and do not appear in the financial statements. d. Advances on salespersons' commissions in the amount of P21;000 have been made. Also, sales commissions payable total P24,000. The net liability of P3,000 is included in Current Liabilities. 1. Adjusted total current assets a. P350,000 b. P364,000 c. P385,000 d. P423,000 2. Adjusted total current liabilities a. P240,000 b. P254,000 c. P275,000 d. P278,000
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The following totals are taken from the statement of financial position of Stream Company: Current assets P350,000 Long-term assets 800,000 Current liabilities 240,000 Long-term liabilities 270,000 Additional information: (a) Cash of P38,000 has been placed in a fund for the retirement of long-term debt. The cash and long-term debt have been offset and are not reflected in the financial statements. (b) Long-term assets include P50,000 in treasury shares. (c) Cash of P14,000 has been set aside to pay taxes due. The cash and taxes payable have been offset and do not appear in the financial statements. (d) Advances on salespersons' commissions in the amount of P21,000 have been made. Also, sales commissions payable total P24,000. The net liability of P3,000 is included in Current Liabilities. Compute for the adjusted totals of Stream's current assets. Group of answer choices P350,000 P364,000 P423,000 P385,000
Swifty 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…
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Nienge Bank has the following balance sheet (in millions) with the risk weights in parentheses.AssetsCashOECD Interbank depositsK3Mortgage loansConsumer loansTotal Assets(0%) K20(20%) K25liabilities and EquityDepositsSubordinated debt (2.5 years)K175(50%) K70(100% K70K185Cumulative preferred stockEquityTotal Liabilities & EquityK5K2K185In addition, the bank has K30 million in performance-related standby letters of credit(SLCs), and K300 million in six-year interest rate swaps. Credit conversion factors follow:Performance-related standby LCs50%1-5 year foreign exchange contracts5%1-5 year interest rate swaps0.5%5-10 year interest rate swaps1.5%d.Discuss the major shortcomings of the Basle I accord.