hat is the amount of cash payments for inventory that Lester will report in the Operating Activities section of its 2017 statement of cash flows assuming that the direct method is used?
January 3, 2018
Assume that the equipment would have an eight-year life and would be depreciated on a straight-line basis with zero salvage value.
January 3, 2018

Determine the amount of cash equivalents that should be combined with cash on the company’s balance sheet at December 31, 2017, and for purposes of preparing a statement of cash flows for the year ended December 31, 2017.

Metropolis Industries invested its excess cash in the following instruments during December 2017: Certificate of deposit, due January 31, 2018 …………………………..$ 35,000 Certificate of deposit, due June 30, 2018 ………………………………..95,000 Investment in City of Elm bonds, due May 1, 2019 …………………….15,000 Investment in Quantum Data stock ………………………………………66,000 Money market fund …………………………………………………….105,000 90-day Treasury bills …………………………………………………….75,000 Treasury note, due December 1, 2018 ………………………………….200,000 Required Determine the amount of cash equivalents that should be combined with cash on the company’s balance sheet at December 31, 2017, and for purposes of preparing a statement of cash flows for the year ended December 31, 2017. View Solution:
Metropolis Industries invested its excess cash in the following instruments

 

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