A new accountant at Leftwich Inc. is trying to identify which of the amounts shown below should be reported as the current asset "Cash and cash equivalents" in the year-end balance sheet, as of April 30, 2014.

1.$60 of currency and coin in a locked box used for incidental cash transactions.
2.A $10,000 U. S. Treasury bill, due May 31, 2014.
3.$260 of April-dated checks that Leftwich has received from customers but not yet deposited.
4.An $85 check received from a customer in payment of its April account, but postdated to May 1.
5.$2,500 in the company’s checking account.
6.$4,800 in its savings account.
7.$75 of prepaid postage in its postage meter.
8.A $25 IOU from the company receptionist.

(a) What balance should Leftwich report as its "Cash and cash equivalents" balance at April 30, 2014?

Cash and cash equivalents balance at April 30, 2014

The correct answer is $17,620.

Explanation:

According to the scenario, the computation of the given data are as follows:

We will include the following transaction as a cash and cash equivalents:

1.$60 of currency and coin in a locked box.

2.A $10,000 U.S. Treasury bill.

3.$260 of April-dated checks that Leftwich has received from customers.

5.$2,500 in the company’s checking account.

6.$4,800 in its savings account.

So, we can calculate the cash and cash equivalents by using following formula:

Cash and Cash equivalents = Amount in point 1 + Amount in point 2 + Amount in point 3 + Amount in point 5 + Amount in point 6

By putting the value, we get

= $60 + $10,000 + $260 + $2,500 + $4,800

= $17,620

answer; /// the best answer to the above question is; the main economic goal that a society consider when deciding the best way to distribute its wealth is equity, this to ensure that all resources are equally distributed; ///(a) (economic equity)

cash flow statement possibly