1. Tyson Furniture has $100,000 in excess cash that it wants to invest in one or more cash equivalents. The treasurer has researched two money market accounts and two certificates of deposit (CDs) offered by four major banks. This is the information she gathered (THE CHART IS LISTED IN THE ATTACHMENT) The two 90-day certificates of deposit are FDIC insured for up to $100,000. The money market accounts are not FDIC insured. Suggest how Tyson Furniture might allocate its $100,000 cash among these four opportunities. Discuss the trade-offs that management must consider. 2. Locate the Home Depot, Inc., 2009 financial statements in Appendix A of this text. Briefly peruse the financial statements and answer the following questions: a. Name the titles of each of Home Depot's financial statements that provide specific information about economic resources, claims to resources, and changes in resources and claims. b. Name three other sections from Home Depot's 2009 financial statements that might be useful to a potential investor or creditor. 3. Locate the balance sheet, income statement, and statement of cash flows of Home Depot, Inc., in Appendix A of your text. Review those statements and then respond to the following for the year ended January 31, 2010 (fiscal year 2009). a. Did the company have a net income or net loss for the year? How much? b. What were the cash balances at the beginning and end of the year? What were the most important causes of the cash decrease during the year? (Treat "cash equivalents" as if they were cash.)

1. Tyson Furniture has $100,000 in excess cash that it wants to invest in one or more cash equivalents. The treasurer has researched two money market accounts and two certificates of deposit (CDs) offered by four major banks. This is the information she gathered: Penalty Minimum Interest for Early Financial Investment Institution Investment Type Investment Rate Withdrawal? Risk Nexity Bank Money market account $ 1,000 0.5% No Very low Bank of America Money market account 50,000 1.0 No Very low Discover Bank 90-day CD 2,500 1.3 Yes Very low Commerce Bank 90-day CD 100,000 1.4 Yes Very low The two 90-day certificates of deposit are FDIC insured for up to $100,000. The money market accounts are not FDIC insured. Suggest how Tyson Furniture might allocate its $100,000 cash among these four opportunities. Discuss the trade-offs that management must consider. 2. Locate the Home Depot, Inc., 2009 financial statements in Appendix A of this text. Briefly peruse the financial statements and answer the following questions: a. Name the titles of each of Home Depot's financial statements that provide specific information about economic resources, claims to resources, and changes in resources and claims. b. Name three other sections from Home Depot's 2009 financial statements that might be useful to a potential investor or creditor. 3. Locate the balance sheet, income statement, and statement of cash flows of Home Depot, Inc., in Appendix A of your text. Review those statements and then respond to the following for the year ended January 31, 2010 (fiscal year 2009). a. Did the company have a net income or net loss for the year? How much? b. What were the cash balances at the beginning and end of the year? What were the most important causes of the cash decrease during the year? (Treat "cash equivalents" as if they were cash.)