Blossom Company has recorded the following items in its financial records. Cash in bank: Checking account $50,000 Money market fund 36,000 Payroll account 26,000 Certificate of deposit (matures in 2 months) 28,000 Certificate of deposit (matures in 12 months) 33,000 Total cash in bank $173,000 Cash in plant expansion fund 143,000 Cash on hand 34,000 Highly liquid investments Petty cash 53,000 2,600 Receivables from customers 122,000 Stock investments 84,000 U.S Treasury bills 43,000 The highly liquid investments (Commercial Paper) 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 Blossom report as "Cash and cash equivalents" on its balance sheet? SUPPORT
Blossom Company has recorded the following items in its financial records. Cash in bank: Checking account $50,000 Money market fund 36,000 Payroll account 26,000 Certificate of deposit (matures in 2 months) 28,000 Certificate of deposit (matures in 12 months) 33,000 Total cash in bank $173,000 Cash in plant expansion fund 143,000 Cash on hand 34,000 Highly liquid investments Petty cash 53,000 2,600 Receivables from customers 122,000 Stock investments 84,000 U.S Treasury bills 43,000 The highly liquid investments (Commercial Paper) 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 Blossom report as "Cash and cash equivalents" on its balance sheet? SUPPORT
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blossom Company has recorded the following items in its financial records.
Cash in bank:
Checking account
$50,000
Money market fund
36,000
Payroll account
26,000
Certificate of deposit (matures in 2 months)
28,000
Certificate of deposit (matures in 12 months)
33,000
Total cash in bank
$173,000
Cash in plant expansion fund
143,000
Cash on hand
34,000
Highly liquid investments
Petty cash
53,000
2,600
Receivables from customers
122,000
Stock investments
84,000
U.S Treasury bills
43,000
The highly liquid investments (Commercial Paper) 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 Blossom report as "Cash and cash equivalents" on its balance sheet?
SUPPORT
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