Which of the following investments should be classified as cash equivalents for Lastima Company in preparing the statement of cash flows? 1 Shares of stock in Lastima Company. 2 A one-month Treasury note purchased by Lastima Company when only 3 months remained in the note's term. 3 Share in a money market fund purchased by Lastima Company; the fund purchases only investment grade corporate debt
instruments with maturities of 2 months or less. 4 A one-year treasury note purchased by Lastima Company when the treasury note was issued, which now has only 2 months remaining in its term.
a. 2, 3
b. 2, 4
c. 2, 3, 4
d. 1, 2, 3, 4
A
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Franklin Company obtained a $160,000 line of credit from State Bank on January 1, Year 1. The company agreed to accept a variable interest rate that was set at 2% above the bank's prime lending rate. The bank's prime rate of interest and the amounts borrowed or repaid during the first three months of Year 1 are shown in the following table. Assume that Franklin borrows or repays on the first day of each month. Amt Borrowed(Repaid) Prime Rate forthe Month1-Jan$40,000 4.0% 1-Feb (10,000) 4.5% 1-Mar 40,000 5.0% What is the amount of interest expense recognized in March?
A. $292 B. $262 C. $232 D. $408
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a. True b. False Indicate whether the statement is true or false
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A. Option A B. Option B C. Option C D. Option D