Question

Vaughn Manufacturing has the following items at year-end:

Cash in bank $36200
Petty cash 300
Short-term paper with maturity of 2 months 6000
Postdated checks 1250

Vaughn should report cash and cash equivalents of:______

Answer 1

Answer:

$42,500

Explanation:

Calculation for what Vaughn should report cash and cash equivalents

CASH AND CASH EQUIVALENTS

Cash in bank $36,200

Petty cash $300

Short-term paper with maturity of 2 months $6,000

Cash and cash equivalents $42,500

Therefore Vaughn should report cash and cash equivalents of:$42,500