Question

Brief Exercise 4-36 Cash Reporting Richter Industries has the following items: $27,500 850 Currency Customer checks that have not been deposited U.S. government bonds that originally maturing in 3 months U.S. government bonds that originally maturing in 12 months Cash in saving and checking accounts Certificates of deposits that originally maturing in 18 months 11,000 14,000 50,000 47,000 Required: How much should Richter reporI as cash and equivalents on its balance sheet?

Answer 1

Cash and cash equivalents include only those cash assets that should be less than 90 days.

A 1 2 Currency 3 Customer checks that have not been deposited 4 U.S. government bonds that originally maturing in 3 months 5 Cash in saving and checking accounts 6 Cash and cash equivalents B Amount $ 27,500.00 $ 850.00 $ 11,000.00 $ 50,000.00 $ 89,350.00

CALC:

B B Amount 27500 A 1 2 Currency 3 Customer checks that have not been deposited 4 U.S. government bonds that originally maturing in 3 months 5 Cash in saving and checking accounts 6 Cash and cash equivalents 850 11000 50000 | =SUM(B2:35)