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Pharoah Company has recorded the following items in its financial records. Cash in bank: Checking account Money market fund Payroll account Certificate of deposit (matures in 2 months) Certificate of deposit (matures in 12 months) Total cash in bank Cash in plant expansion fund Cash on hand Highly liquid investments Petty cash Receivables from customers Stock investments U.S Treasury bills $33,000 Cash and cash equivalents $ I 19,000 9,000 11,000 16,000 $88,000 126,000 17,000 36,000 900 105,000 67,000 26,000 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 Pharoah report as "Cash and cash equivalents" on its balance sheet?

Pharoah Company has recorded the following items in its financial records. Cash in bank: Checking account Money market fund Payroll account Certificate of deposit (matures in 2 months) Certificate of deposit (matures in 12 months) Total cash in bank Cash in plant expansion fund Cash on hand Highly liquid investments Petty cash Receivables from customers Stock investments U.S Treasury bills $33,000 Cash and cash equivalents $ I 19,000 9,000 11,000 16,000 $88,000 126,000 17,000 36,000 900 105,000 67,000 26,000 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 Pharoah report as "Cash and cash equivalents" on its balance sheet?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pharoah Company has recorded the following items in its financial records. Cash in bank: Checking account Money market fund Payroll account Certificate of deposit (matures in 2 months) Certificate of deposit (matures in 12 months) Total cash in bank Cash in plant expansion fund Cash on hand Highly liquid investments Petty cash Receivables from customers Stock investments U.S Treasury bills Cash and cash equivalents $ $33,000 I 19,000 9,000 11,000 16,000 $88,000 126,000 17,000 36,000 900 105,000 67,000 The highly liquid investments had maturities of 3 months or next 6 to 12 months. The plant expansion project will begin in 3 years. (a) What amount should Pharoah report as "Cash and cash equivalents" on its balance sheet? 26,000 when they were purchased. The stock investments will be sold in the
Transcribed Image Text:Pharoah Company has recorded the following items in its financial records. Cash in bank: Checking account Money market fund Payroll account Certificate of deposit (matures in 2 months) Certificate of deposit (matures in 12 months) Total cash in bank Cash in plant expansion fund Cash on hand Highly liquid investments Petty cash Receivables from customers Stock investments U.S Treasury bills Cash and cash equivalents $ $33,000 I 19,000 9,000 11,000 16,000 $88,000 126,000 17,000 36,000 900 105,000 67,000 The highly liquid investments had maturities of 3 months or next 6 to 12 months. The plant expansion project will begin in 3 years. (a) What amount should Pharoah report as "Cash and cash equivalents" on its balance sheet? 26,000 when they were purchased. The stock investments will be sold in the
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