The Cash account in the general ledger of Hendry Corporation shows a balance of $93,460 at December 31,2021 . In addition, Hendry Corporation owns the following assets at December 31, 2021: (1) money market accounts totaling $75,000, (2) \$3,000 of high-grade, 90-day, commercial paper, and (3) highly liquid stock investments valued at \$86,000 at December 31, 2021 (these investments originally cost Hendry Corporation $116,000) Hendry Corporation uses the income statement approach to compute its uncollectible accounts expense. The general ledger had reported Accounts Receivable of $2,150,000 at January 1, 2021. At that time, the Allowance for Doubtful Accounts had a credit balance of $40,000. Throughout the year, the company collected $21,350,000 on account from credit customers. Credit sales for the year ended December 31, 2021, totaled $20,000,000. Of these credit sales, 1.3 percent were estimated to eventually become uncollectible. Required: a. Compute cash and cash equivalents to be reported in Hendry Corporation's balance sheet dated December 31,2021. b. Determine the net realizable value of Hendry Corporation's accounts receivable at December 31, 2021. c. Determine the total dollar amount of financial assets to be reported in Hendry Corporation's balance sheet dated December 31 , 2021. d. Assume that it is normal for firms similar to Hendry Corporation to take an average of 45 days to collect an outstanding receivable. Is Hendry Corporation's collection performance above or below this average? The Cash account in the general ledger of Hendry Corporation shows a balance of $93,460 at December 31,2021 . In addition, Hendry Corporation owns the following assets at December 31, 2021: (1) money market accounts totaling $75,000, (2) \$3,000 of high-grade, 90-day, commercial paper, and (3) highly liquid stock investments valued at \$86,000 at December 31, 2021 (these investments originally cost Hendry Corporation $116,000) Hendry Corporation uses the income statement approach to compute its uncollectible accounts expense. The general ledger had reported Accounts Receivable of $2,150,000 at January 1, 2021. At that time, the Allowance for Doubtful Accounts had a credit balance of $40,000. Throughout the year, the company collected $21,350,000 on account from credit customers. Credit sales for the year ended December 31, 2021, totaled $20,000,000. Of these credit sales, 1.3 percent were estimated to eventually become uncollectible. Required: a. Compute cash and cash equivalents to be reported in Hendry Corporation's balance sheet dated December 31,2021. b. Determine the net realizable value of Hendry Corporation's accounts receivable at December 31, 2021. c. Determine the total dollar amount of financial assets to be reported in Hendry Corporation's balance sheet dated December 31 , 2021. d. Assume that it is normal for firms similar to Hendry Corporation to take an average of 45 days to collect an outstanding receivable. Is Hendry Corporation's collection performance above or below this average
