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Cash and Liquid Assets on the Balance Sheet The following current assets are listed in a companyA1s general ledger December 31 2014 December 31 2013 Accounts receivable

Cash and Liquid Assets on the Balance Sheet

The following current assets are listed in a companyA????1s general ledger:

 

December 31, 2014

December 31, 2013

Accounts receivable

$ 12,300

$ 10,000

Certificates of deposit (three months)

10,000

10,000

Marketable securities

4,500

4,000

Petty cash fund

1,200

1,500

Money market fund

25,800

28,000

Cash in checking account

6,000

6,000

Required

1. Which items are cash equivalents?

2. Explain where items that are not cash equivalents should be classified on the balance sheet.

3. What are the amount and the direction of change in cash and cash equivalents for 2014? Is the company as liquid at the end of 2014 as it was at the end of 2013? Explain your answer.

 

May 06 2020 View more View Less

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