Reporting Cash Worldcorp Manufacturing has production sites around the world. In its financial statements, the reported cash balance includes amounts on deposit in a variety of places with some balances designated for specific purposes. How might knowledge of the information presented in each of the independent situations listed below assist an investor in evaluating the liquidity position of Worldcorp Manufacturing?

a. Nearly all cash held in U.S. banks is in the form of compensating balances.

b. A significant part of the cash balance is held in Mexican pesos even though the Mexican government has been seriously discussing devaluing the peso.

c. The company reports virtually no cash, but has a significant amount classified as cash equivalents.

d. Cash constitutes a very large portion of current assets even though the company has no plans to purchase additional assets or declare a major dividend in the near future.