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

I'm not sure what I'msupposed to do for this problem or how to go about solving it.

A8

subject :- Accounting

Clayton Industries has the following account balances: Current assets Noncurrent assets The company wishes to raise $45,000 in cash and is considering two financing options: Clayton can sell $45,000 of bonds payable, or it can issue additional common stock for $45,000. 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. Currently If bonds are issued If stock is issued $ 22,000 Current liabilities 77,880 Noncurrent liabilities stockholders' equity Currently If bonds are issued If stock is issued Current Ratio 2.44 to 1 a-2. Compute the debt-to-assets ratio for Clayton's management. Note: Round your answers to 1 decimal place. Bonds Stock to 1 to 1 Debt to Assets Ratio Additional Retained Earnings $ 9,000 50,000 48,888 % % % b. Assume that after the funds are invested, EBIT…

As loan analyst for Wildhorse Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $119,000 $332,000 Receivables 226,000 298,000 Inventories 562,000 536,000 Total current assets 907,000 1,166,000 Other assets 483,000 636,000 Total assets $1,390,000 $1,802,000 Liabilities and Stockholders' Equity. Current liabilities $319,000 $350,000 Long-term liabilities 419.000 483,000 Capital stock and retained earnings 652,000 969,000 Total liabilities and stockholders' equity $1,390,000 $1,802,000 Annual sales $948,000 $1,453,000 Rate of gross profit on sales 30 % 40 % Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted. Compute the various ratios for each company. (Round answer to 2 decimal places, eg. 2.25.) Toulouse Co. Lautrec Co. Current ratio :1 Acid-test ratio Accounts receivable turnover times times…

Bonita Company issued common stock for proceeds of $376000 during 2020. The company paid dividends of $73000 and issued a long-term note payable for $98000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $16000. The financing section of the statement of cash flows will report net cash inflows of $360000. O $287000. O $465000. O $303000.

Ogden Corporation has a projected balance sheet that includes the following accounts.  What is the projected cash balance?  Cash $            ? Marketable securities 405,000 Accounts receivable 980,000 Inventory 785,000 Non-current assets, net 2,110,000 Total liabilities 1,636,000 Total equity 3,220,000

As loan analyst for Waterway Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $114,000 $328,000 Receivables 230,000 296,000 Inventories 582,000 493,000 Total current assets 926,000 1,117,000 Other assets 493,000 607,000 Total assets $1,419,000 $1,724,000 Liabilities and Stockholders' Equity Current liabilities $314,000 $340,000 Long-term liabilities 385,000 493,000 Capital stock and retained earnings 720,000 891,000 Total liabilities and stockholders' equity $1,419,000 $1,724,000 Annual sales $911,000 $1,440,000 Rate of gross profit on sales 30 % 40 % Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted. Compute the various ratios for each company. (Round answer to 2 decimal places, e.g. 2.25.) Toulouse Co. Lautrec Co. Current ratio :1 :1 Acid-test ratio :1 :1 Accounts receivable turnover…

The table below is the balance sheet for the Oilers Bank, which has a target reserve ratio of 5%. Liabilities/Equity Demand Deposits Shareholders' equity Assets $4,000 62,000 17,000 9,000 Reserves $72,000 20,000 Loans Securities Fixed assets Total 92,000 Total 92,000 a. The Oilers Bank is over-reserved v by $ b. The bank makes a loan equal to the excess reserves and the borrower writes a cheque (for the full amount of the loan) to another customer of the bank, who then deposits it. The new amount of excess reserves is $ c. Instead, the cheque written by the borrower is cleared against the Oilers Bank (the cheque was written to a customer of another bank). The amount of excess reserves held by the Oilers Bank is $ 14 of 40 Next > < Prev