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  3. cook co. had the following balances at december 31

Cook Co. had the following balances at December 31, 1992: Cash in checking account $350,000...

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Accounting

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Cook Co. had the following balances at December 31, 1992: Cash in checking account $350,000 Cash in money-market account 250,000 U.S. Treasury bill, purchased 12/1/92, maturing 2/28/93 800,000 U.S. Treasury bond, purchased 3/1/92, maturing 2/28/93 500,000 Cook's policy is to treat as cash equivalents all highly-liquid investments with a maturity of three months or less when purchased. What amount should Cook report as cash and cash equivalents in its December 31, 1992, balance sheet? a. $600,000 b. $1,150,000 c. $1,400,000 d. $1,900,000 Tara Company reported revenue of $1,980,000 in is income statement for the year ended December 31, 1987. Additional information was as follows: 12/31/86 $415,000 12/31/87 $550,000 Accounts receivable Allowance for doubtful accounts 25,000 40,000 No uncollectible accounts were written off during 1987. Had the cash basis of accounting been used instead, Tara would have reported receipts for 1987 of a. $2,115,000 b. $1,885,000 c. $1,860,000 d. $1,845,000 Which of the following information should be disclosed as supplemental information in the statement of cash flows? a. b. c. d. Cash flow per share Yes Yes No No Conversion of debt to equity Yes No Yes No

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