Boardwalk Real Estate Investment Trust reports the following selected information (in thousands) in its December 31, 2010, financial statements:

Additional information:
1. Cash and cash equivalents comprise cash in the bank, cash on hand, and instruments with maturity dates of three months or less when acquired.
2. Segregated tenants' security deposits are held on behalf of tenants and are returned at the end of a lease if the apartment rented to the tenant is undamaged.
Instructions
(a) Why do you think that the security deposits are not included in cash and cash equivalents?
(b) How is it possible that Boardwalk has $228,086 thousand of cash and cash equivalents at the end of 2010 but generated only $134,079 thousand of cash from operating activities in the same year?

Transcribed Image Text:

Cash and cash equivalents Segregated tenants' security deposits Cash provided by operating activities 2010 $228,086 11,987 134,079 2009 $190,325 12,917 133,419