Logistics Company had the following items listed in its trial balance at 12/31/2021:

Balance in checking account, Bank of the East$402,000Treasury bills, purchased on 11/1/2021,

mature on 1/30/202216,000Loan payable, long-term, Bank of the East230,000

Included in the checking account balance is $40,000 of restricted cash that Bank of the East requires as a compensating balance for the $230,000 note. What amount will Logistics include in its year-end balance sheet as cash and cash equivalents?

Multiple Choice

• $378,000.
• $418,000.
• $402,000.
• $362,000.