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:

$37,100

Explanation:

Calculation for what Vaughn should report as cash and cash equivalents

Cash in bank $36,200

Petty cash 300

Short-term paper with maturity of 2 months 600

Cash and cash equivalents $37,100

Therefore Vaughn should report cash and cash equivalents of:$37,100