Lower Enterprises invested its excess cash in the following instruments during December 2014:
Certificate of deposit,due January 31,2017 $ 85,000
Certificate of deposit,due March 30,2015 120,000
Commercial paper,original maturity date February 28,2015 105,000
Deposit into a money market fund 45,000
Investment in stock 55,000
90-day Treasury bills 110,000
Treasury note,due December 1,2042 400,000
REQUIRED:
Determine the amount of cash equivalents that should be combined with cash on the
company's balance sheet at December 31,2014,and for purposes of preparing a statement
of cash flows for the year ended December 31,2014.

Question

Quizplus · Accepted Answer

The Answer of Lower Enterprises invested its excess cash in the following instruments during December 2014:
Certificate of deposit,due January 31,2017 $ 85,000
Certificate of deposit,due March 30,2015 120,000
Commercial paper,original maturity date February 28,2015 105,000
Deposit into a money market fund 45,000
Investment in stock 55,000
90-day Treasury bills 110,000
Treasury note,due December 1,2042 400,000
REQUIRED:
Determine the amount of cash equivalents that should be combined with cash on the
company's balance sheet at December 31,2014,and for purposes of preparing a statement
of cash flows for the year ended December 31,2014.

Lower Enterprises Invested Its Excess Cash in the Following Instruments