The XYZ campany emaprises own the following assets at december 31, 2015 cash in bank using account(68000
Checking account balance 17000
Cash on hand 9300
Postdated checks 750
Tax refund due 31400
Certificate of deposits(180 days) 50000
INSTRUCTION:what amount should be reported as cash?
The amount that should be reported as cash is the sum of all the cash and cash equivalents, which includes:
- Cash in bank: $68,000
- Checking account balance: $17,000
- Cash on hand: $9,300
- Postdated checks: $750 (assuming they will be deposited soon and become available)
- Tax refund due: $31,400 (assuming it will be received soon)
- Certificate of deposits (180 days): $50,000 (since it can be easily converted to cash within a short time frame)
Therefore, the total amount to be reported as cash is:
$68,000 + $17,000 + $9,300 + $750 + $31,400 + $50,000 = $176,450.
So, the company should report $176,450 as cash on its financial statements.