The Following Information Is Available for Montrose Company at December

question 95

Multiple Choice

The following information is available for Montrose Company at December 31: A nine-month certificate of deposit maturing on June 30 of
$$\begin{array} { | l | r | } \hline \text { Cash in bank account } & \$ 8,540 \\\hline \text { Petty cash } & 250 \\\hline \text { Money market fund balance } & \$ 10,400 \\\hline \text { Checks from customers } & \$ 1,350 \\\hline \text { NSF checks from customers returned by bank } & \$ 805 \\\hline \text { Treasury bill maturing in 60 days } & \$ 10,000 \\\hline \text { Money orders } & \$ 290 \\\hline \text { A nine-month certificate of deposit maturing on June 30 of next year } & \$ 6,000 \\\hline\end{array}$$
Based on this information, the amounts considered Cash and Cash Equivalents, respectively on December 31 are:

• A) Cash $19,190; Cash equivalents $16,000
• B) Cash $8,540; Cash equivalents $22,290
• C) Cash $8,790; Cash equivalents $26,400
• D) Cash $10,430; Cash equivalents $20,400
• E) Cash $11,235; Cash equivalents $26,400

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Definitions:

Financial Measures

Metrics used to assess a company's performance in terms of profitability, liquidity, solvency, and operational efficiency.

Bottleneck

A point of congestion or blockage in a production system that significantly reduces efficiency.

Theory of Constraints

A management philosophy focusing on identifying and relieving bottlenecks in processes to improve performance.

External Failure Cost

Costs incurred when a product fails to meet quality standards after it is delivered to the customer, including returns, repairs, and lost reputation.