Question 3

Presented below are a number of independent situations. For each individual situation, determine the amount that should be reported as cash. 1. Checking account balance $928,400; certificate of deposit $1,438,400; cash advance to subsidiary of $983,530; utility deposit paid to gas company $191.

Cash balance

$

2. Checking account balance $501,500; an overdraft in special checking account at same bank as normal checking account of $19,280; cash held in a bond sinking fund $232,800; petty cash fund $350; coins and currency on hand $1,540.

Cash balance

$

3. Checking account balance $618,300; postdated check from customer $9,900; cash restricted due to maintaining compensating balance requirement of $103,800; certified check from customer $10,576; postage stamps on hand $559.

Cash balance

$

4. Checking account balance at bank $45,650; money market balance at mutual fund (has checking privileges) $51,780; NSF check received from customer $755.

Cash balance

$

5. Checking account balance $700,700; cash restricted for future plant expansion $515,200; short-term Treasury bills (which mature in 6 months) $186,470; cash advance received from customer $965 (not included in checking account balance); cash advance of $6,740 to company executive, payable on demand; refundable deposit of $24,520 paid to federal government to guarantee performance on construction contract.

Cash balance

$