Question

Waterway Industries has the following items at year-end:

Cash in bank $46500
Petty cash 550
Short-term paper with maturity of 2 months 9000
Postdated checks 2220
Waterway should report cash and cash equivalents of:_____.
A) $20,000.
B) $20, 300.
C) $25, 800.
D) $27, 200.
E) $21, 700.

Answer 1

B $56,050

Step-by-step explanation:

Cash and cash equivalents for water way is calculated as;

= Cash in bank + Petty cash + Short term paper with maturity of 2 months

Given that;

Cash in bank = $46,500

Petty cash = $550

Short term paper with maturity of 2 months = $9,000

= $46,500 + $550 + $9,000

= $56,050

Therefore, cash and cash equivalents for Water way is $56,050