Monty Company has recorded the following items in its financial records. $50,200 Cash in bank Cash in plant expansion fund 104,600 12,900 Cash on hand Highly liquid investments 38,900 Petty cash 560 97,200 Receivables from customers Stock investments 64,300 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. (a) What amount should Monty report as "Cash and cash equivalents" on its balance sheet? Cash and cash equivalents $

Monty Company has recorded the following items in its financial records. $50,200 Cash in bank Cash in plant expansion fund 104,600 12,900 Cash on hand Highly liquid investments 38,900 Petty cash 560 97,200 Receivables from customers Stock investments 64,300 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. (a) What amount should Monty report as "Cash and cash equivalents" on its balance sheet? Cash and cash equivalents $

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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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
AA Company had the following items in its "Cash equivalents" account as of December Money market fund due in 3 months acquired 1 month ago 250,000 Investment in equity designated in OCI-expected to disposed in 3 months 500,000 Time deposit - 2 months maturity, acquired on 12/1/2022 600,000 Treasury bills- due in 3 months from date of acquisition (12/30/2022) 350,000 Redeemable preference shares- purchased on 11/30/2022 due on 3/31/2023 300,000 What is the correct balance of cash and cash equivalents as of December 31, 2022?
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…
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 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?
It is January 2nd and senior management of Baldwin meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 75,000 shares of stock plus a new bond issue. Assume the stock can be issued at yesterday’s stock price ($42.57) and leverage changes to 2.7. Which of the following statements are true? Select all that apply. Select: 3 •Total liabilities will be $150,548,149 •Total assets will rise to $238,527,765 •Working capital will remain the same at $16,224,801 •The total investment for Baldwin will be $25,924,850 •Baldwin will issue stock totaling $3,192,750
Use the following information for the next five items: At the beginning of the current year, Glasgow Company started business and issued share capital, 60,000 shares with P100 par, for the following considerations: Cash - P500,000; Building with useful life of 15 years - P4,500,000; and Land - P1,500,000. An analysis of the bank statements showed total deposits, including the original cash investment, of P3,500,000. The balance in the bank statement on December 31 was P250,000 but there were checks amounting to P50,000 dated in December but not paid by the bank until January of next year. Cash on hand on December 31 was P125,000 including customers' deposit of P75,000. During the year, the entity borrowed P500,000 from the bank and repaid P125,000 and P25,000 interest. The proceeds of the loan were credited to the bank account of the entity. Disbursements paid in cash during the year were as follows: Utilities - P100,000; Salaries - P100,000; Supplies - P175,000; Taxes - P25,000; and…
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
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 liabilities a. P240,000 b. P254,000 c. P275,000 d. P278,000
Clayton Industries has the following account balances: Current assets $ 24,000 Current liabilities $ 8,000 Noncurrent assets 89,000 Noncurrent liabilities 54,000 Stockholders’ equity 51,000 The company wishes to raise $34,000 in cash and is considering two financing options: Clayton can sell $34,000 of bonds payable, or it can issue additional common stock for $34,000. To help in the decision process, Clayton’s management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio. Required a-1. Compute the current ratio for Clayton’s management. (Note: Round your answers to 2 decimal places.)
An Oil firm listed on the GSE has presented the following cashflows for the next five years. Year CF to Equity Interest Exp (1-tax rate) CF to Firm 1 GH¢50 GH¢40 GH¢90 2 60 40 100 3 68 40 108 4 76.2 40 116.2 5 83.49 40 123.49 Terminal Value GH¢1,603.00 GH¢2,363.01 It was discovered by the Finance Controller in the firm that the cost of equity is 13.625% and the firm can borrow long term debt at 10%. (The tax rate for the firm is 50%). The current market value of equity is GH¢1,073 and the value of debt outstanding is GH¢800. Required: i) Estimate the value of equity in the firm now. ii) Estimate the value of firm now.