1 end of its fiscal hendickson Caporation\'s trialbalanceforuy 3, the endor, yea
ID: 2594951 • Letter: 1
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1 end of its fiscal hendickson Caporation's trialbalanceforuy 3, the endor, year, included the following accounts: $25,000 60,000 20,000 45,000 9,000 Accounts Receivable Copyright Investments Prepaid Insurance Note receivable, due in two years 75,000 5,500 Cash in Bank Investments are treasury bills that were purchased in May and mature on August 15. Prepaid insurance is a three year policy that was purchased on July 31. The amount that should be classified as current assets in the July 31 balance sheet is A) $144,500 B) $138,500 C) $93,500 D) $213,500 38) Hitchcock Enterprises sold a vacant plot of land for $20,000. The company had paid $5,000 for the land ten years ago. On the statement of cash flows, this transaction would be reported as a A) operating cash inflow of $15,000 B) investing cash inflow of $15,000 C) investing cash flow of $20,000 D) financing cash inflow of $20,000 39) Determining the present value of one or more future amounts is known as A) inverting B) compounding C) discounting D) annuitizing Anakwe-Intermediate 1, Fall 2017 Final Exam 101PageExplanation / Answer
37) Total current assets = Accounts receivable + Inventories + Investments + Prepaid insurance + Cash in bank
= $25000+$60000+$45000+$9000+$5500
= $144500
Option A
38) SInce sale of land(sale of asset) is an investing activity, only the gain on sale of land is reported i.e $20000-$5000 = $15000
Answer is Option B
39) Since the cashflows are being bought to the current year from a future year
It is known as discounting
So, the answer is Option C
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