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ABC Company reported total cash and cash equivalents of P6,831,250 on December 31, 2020, which includes the following: 120-day certificates of deposit 812,500 PDC (Post

ABC Company reported total cash and cash equivalents of P6,831,250 on December 31, 2020, which includes the following:

120-day certificates of deposit812,500
PDC (Post Dated Check dated January 2, 2021281,250
Special cash fund for payment of long-term bond1,500,000
Commercial paper due in 100 days1,250,000
Currency and coins in petty cash fund (including unreplenished vouchers of P3,125)20,000

ABC Company has agreed to maintain a cash balance of P562,500 which will not be available for withdrawal to ensure future credit availability. The said amount was included in the balance above.

What is the total amount that ABC Company should report as “cash and cash equivalents” in the current assets section of the statement of financial position on December 31, 2020?

Group of answer choices

P6,831,250

P3,863,750

P2,421,875

P5,465,000

 

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