Lakeland Enterprises Invested Its Excess Cash in the Following Instruments

question 41

Essay

Lakeland Enterprises invested its excess cash in the following instruments during December 2016: $\begin{array}{lr}\text { Certificate of deposit, due January 31,2019 } & \$ 85,000 \\\text { Certificate of deposit, due March 30, } 2017 & 120,000 \\\text { Commercial paper, original maturity date February } 28,2017 & 105,000 \\\text { Deposit into a money market fund } & 45,000 \\\text { Investment in stock } & 55,000 \\90-\text { day Treasury bills } & 110,000 \\\text { Treasury note, due December } 1,2044 & 400,000\end{array}$ Required:
Determine the amount of cash equivalents that should be combined with cash on the company's balance sheet at December 31, 2016, and for purposes of preparing a statement of cash flows for the year ended December 31, 2016.

Learn the dynamics of output and price levels in response to economic policies and external shocks.

Appreciate the historical context and impact of significant economic events like the Great Depression and the 2008-2009 recession.

Grasp the concept and implications of business cycles on the economy.

Comprehend Keynesian economic theories regarding aggregate demand and unemployment.

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Definitions:

Shut-down Point

The price and quantity point at which a business ceases operations because continuing would result in losses.

Economically Efficient

A situation where resources are allocated in a way that maximizes the net benefit to society or minimizes the cost of achieving a set output level.

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or a service is not achieved or is not achievable.

Social Cost

The total cost to society of an activity or decision, including both direct costs borne by the individual and indirect costs absorbed by the broader community.