HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
7th Edition
ISBN: 9780136505273
Author: MILLER-NOBLES
Publisher: PEARSON
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Chapter 10, Problem 10.1SE

Identifying why companies invest and classifying investments

Garden Haven has excess cash of $15, 000 at the end of the harvesting season. Garden Haven will need this cash in four months for normal operations.

Requirements

1. What are some reasons why Garden Haven may choose to invest in debt or equity securities?

2. What type of classification would Garden Haven's investment fall within-short-term or long-term? Why?

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