acc362 nayak company has recorded the following items in its financial records 491789
Nayak Company has recorded the following items in its financial records
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acc362 nayak company has recorded the following items in its financial records 491789
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|
Cash in bank |
41,000 |
|
Cash in plant expansion fund |
100,000 |
|
Cash on hand |
8,000 |
|
Highly liquid investments |
34,000 |
|
Petty cash |
500 |
|
Receivables from customers |
89,000 |
|
Stock investments |
61,000 |
The cash in bank is subject to a compensating balance of $5,000. The highly liquid investments had maturities of 3 months or less when they were purchased. The stock investments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years.
Instructions:
(a) What amount should Nayak report as “Cash and cash equivalents” on its balance sheet?
(b) Where should the items not included in part (a) be reported on the balance sheet?
(c) What disclosures should Nayak make in its financial statements concerning “cash and cash equivalents”?
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