14 Garden Haven has excess cash of $15,000 at the end of the harvesting season....
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14 Garden Haven has excess cash of $15,000 at the end of the harvesting season. Garden Haven will need this cash in four months for normal operations Requirements 1. What are some reasons why Garden Haven may choose to invest in debt or equity securities? 2. What type of classification would Garden Haven's investment fall within-short-term or long-term? Why? Requirement 1. What are some reasons why Garden Haven may choose to invest in debt or equity securities? (1) (2) Requirement 2. What type of classification would Garden Haven's investment fall within-short-term or long-term? Why? This investment would be classified as a (3) investment because (4) The company wants to generate earnings from the excess cash. (1) O The company has seasonal excess cash not needed for normal business operations. The company wants to consolidate its financial statements with another company. The company wants to gain management control over another company. The company wants to generate earnings from the excess cash. (3) O long-term O short-term (2) O O The company has seasonal excess cash not needed for normal business operations. O The company wants to consolidate its financial statements with another company. The company wants to gain management control over another company. (4) O investments in debt and equity securities are always long-term. investments in debt and equity securities are always short-term. Garden Haven intends to hold the investment for less than one year. O Garden Haven intends to hold the investment for more than one year
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