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 Receivables from customers Stock investments 53,000 2,600 122,000 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?

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 Receivables from customers Stock investments 53,000 2,600 122,000 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?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter23: Other Topics In Working Capital Management

Section: Chapter Questions

Problem 2P: Optimal Cash Transfer Barenbaum Industries projects that cash outlays of 4.5 million will occur...

See similar textbooks

Similar questions

Solve it early all subparts I definitely upvote solution if correctly now
Tent Attempt in Progress Crane Company has recorded the following items in its financial rec 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. (a) What amount should Crane report as "Cash and cash equivalents' on its balance sheet?
Consider a bank with the following balance sheet Assets Liabilities Required reserves Excess reserves T-bills Commercial loans $ 9 million Checkable deposits $ million Bank capital $ 44 million $ 52 million $ 100 million $ 10 million The bank makes a loan commitment for $15 million to a commercial customer. Before the commitment, the bank's capital ratio equals%. (Round your response to two decimal places.)
+ Cash Reserves Of which Required ASSETS Excess reserves Loans Securities Includes $10 million USTS Mortgages Loans to other banks $10 million $5 million $5 million $55 million $15 million $12 million $3 million Demand Deposits Savings Deposits CDs LIABILITIES Borrowing from FR Owners' Equity A. Does this bank meet a 10% required reserve requirement? Explain. B. Does this bank meet an 8% capital to asset ratios? Why or why not? $50 million $10 million $20 million $5 million $10 million C. A new firm comes into town. It is seeking funding to build a new plant. Can this bank compete for that business? How?
← Assets Reserves $ Securities Loans Your bank has the following balance sheet:< 50 million 50 million 150 million Liabilities Checkable deposits $200 million H Bank capital 50 million If the required reserve ratio is 10%, what actions should the bank manager take if there is an unexpected deposit outflow of $60 million?<
5
Bank 5 Balance Sheet Assets Liabilities & Equity (millions) 12 M Demand Deposits (millions) Cash FED Deposits US Treasuries 82 M 67 M 18 M NOW Accounts 35 M CDs 119 M 290 M Other Borrowings 58 M Capital 413 M Total Liabilities & Equity Loans 100 M Other Assets 45 M Total Assets 413 M Calculate the excess reserves for Bank 5 if the reserve requirement is 10%. O $3,200,000 O $50,100,000 O $15,100,000 $38,200,000
Bank Balance Sheet Assets Amount Liabilities Total reserves Loans $ 80,000 120,000 Transactions accounts Amount $ 200,000 With a required reserve ratio of 10 percent, this bank would have excess reserves of Multiple Choice О $40,000. О $20,000. none of the above О $60,000.
1. Which of the following is considered as a Cash Equivalent? -Postal money Order -Check -Treasury Bill Issued 1 year ago Acquired and Maturing 3 months from now -Treasury Bill Issued 5 Months Ago , Acquired and Maturing 4 months from now 2. Which of the following is Considered Cash? -Pension Fund -sinking Fund "Bond Attached is 2 year maturity" -Fund to buy PPE for Next Year -Petty Cash Fund 3. Which of the following would result in a Dr to AR? - -Sale of goods under " special order" "Special order is yet to be completed" -Sale with a right of repurchase -Sale of goods under "Consignment" -Sale of goods classified as Trade 4. When inventory is held on consignment it should be? - -Reported as cost of goods sold -Recorded as inventory -Derecognized -Reported as purchase 5. the Following are classified under PPE Except? - -Machinery -All are PPE -Building -Land 6. Which of the following is classified under PAS 16 -…
Plz solve it’s timed!!
A-1
cash flows from these three investments are as follows: Investment B $ 2.000 $1,000 3.000 1,000 4.000 1.000 (5,000) 1,000 16 5.000 3.000 (Click on the con in order to copy its contents into a spreadsheet What is the present value of each of these three investments if the appropriate discount rate is 15 percent? End of Year 23 JEED $ 6,000 6.000 (6.000) (6.000) 16.000 a. What is the present value of investment A at an annual discount rate of 15 percent? (Round to the nearest cent