what amount should wynn report as ldquo cash and cash equivalents rdquo on its balan 616549
Wynn Company has recorded the following items in its financial records.
|
Cash in bank |
$ 42,000 |
|
Cash in plant expansion fund |
100,000 |
|
Cash on hand |
12,000 |
|
Highly liquid investments |
34,000 |
|
Petty cash |
500 |
|
Receivables from customers |
89,000 |
|
Stock investments |
61,000 |
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 Wynn 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 Wynn make in its financial statements concerning “cash and cash equivalents”?