Question
Question 10 (4 points) Flip Co. had the following balances at December 31, 2015: Cash in checking account $35,000 Cash in money market account 75,000
Flip Co. had the following balances at December 31, 2015:
Cash in checking account $35,000
Cash in money market account 75,000
US Treasury bill, purchased 12/1/2015, maturing 3/31/2016 350,000
US Treasury bill, purchased 11/1/2015, maturing 1/31/2016 400,000
Flip's policy is to treat as cash equivalents all highly liquid investments with a maturity of three months or less when purchased.What amount should Flip report as cash and cash equivalents in its December 31, 2015 balance sheet?
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Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
3rd edition
78025427, 978-0077736460, 007773646X, 978-0078025426
