[L][3] During the year, 40 of cash was invested in Treasury Securities. 25 of these are 30 day Tbills and the remaining 15 were 5 year securities. [L][4] Some of the Cash balances represent holdings in the EURO. In the current year when those EURO balances are translated back to US DOLLARS and grouped as part of the CASH T Account, the balance has decreased 15. This 15 difference must be shown as an FX effect in the Statement of Cash Flows. As it happens it is also an Income Statement loss which cannot be reported in the groupings because it must be reclassified in the Reconciliation Section of the Statement of Cash Flows and not left in any single one of the cash flow groupings (Operations, Investing or Financing). Make the adjustment as an amount "added back" to Earnings in Operations. [L][5] Standby Line of Credit in the event of a negative Cash Balance a standby Bank Sine of credit is used to bring the cash balance to so The standby Bank Une of Credit must be reduced to so at the earliest opportunity Remerber that the Line of Credit is used to "top off the CASH account but cash changes related to its use must be shown as financing cash flows. Ciminn [L][3] During the year, 40 of cash was invested in Treasury Securities. 25 of these are 30 day Tbills and the remaining 15 were 5 year securities. [L][4] Some of the Cash balances represent holdings in the EURO. In the current year when those EURO balances are translated back to US DOLLARS and grouped as part of the CASH T Account, the balance has decreased 15. This 15 difference must be shown as an FX effect in the Statement of Cash Flows. As it happens it is also an Income Statement loss which cannot be reported in the groupings because it must be reclassified in the Reconciliation Section of the Statement of Cash Flows and not left in any single one of the cash flow groupings (Operations, Investing or Financing). Make the adjustment as an amount "added back" to Earnings in Operations. [L][5] Standby Line of Credit in the event of a negative Cash Balance a standby Bank Sine of credit is used to bring the cash balance to so The standby Bank Une of Credit must be reduced to so at the earliest opportunity Remerber that the Line of Credit is used to "top off the CASH account but cash changes related to its use must be shown as financing cash flows. Ciminn