Classifi cation of Cash Equivalents and Investments on a Balance Sheet Classify each of the following items as a cash equivalent (CE), a short-term investment

(STI), or a long-term investment (LTI).

1. A 120-day certifi cate of deposit.

2. Three hundred shares of GM common stock. The company plans on selling the stock in six months.

3. A six-month U.S Treasury bill.

4. A 60-day certifi cate of deposit.

5. Ford Motor Co. bonds maturing in 15 years. The company intends to hold the bonds until maturity.

6. Commercial paper issued by ABC Corp., maturing in four months.

7. Five hundred shares of Chrysler common stock. The company plans to sell the stock in 60 days to help pay for a note due at that time at the bank.

8. Two hundred shares of GE preferred stock. The company intends to hold the stock for ten years and then sell it to help fi nance construction of a new factory.

9. Ten-year U.S. Treasury bonds. The company plans to sell the bonds on the open market in six months.

10. A 90-day U.S. Treasury bill.

AppendixLO1