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Pandecoco Company reported the following assets in the statement of financial position:
Cash in bank 2,000,000
Accounts receivable 4,000,000
Inventory 1,500,000
Financial asset at fair value 500,000
Patent 1,000,000
Advances to employees 200,000
Advances to suppliers 400,000
Prepaid expenses 100,000
Problem 1: In preparing financial statements in a hyperinflationary economy, what total amount should be classified as monetary assets?
a. 6,200,000
b. 6,600,000
c. 6,700,000
d. 7,700,000
Financial Statement Analysis and Preparation
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