Yellow Ltd requires you to determine, for each of the three scenarios below, the cash...
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Accounting
Yellow Ltd requires you to determine, for each of the three scenarios below, the cash and cash equivalents amount to include in its Statement of Cash Flows.
Items from the Statement of Financial Position:
Scenario 1
Scenario 2
Scenario 3
Current asset
Short term investment (120 day)
-
$70 000
$5 000
Current asset
Foreign bank account
(There is asignificant risk of change in value)
-
5 000
-
Current asset
Short term investment (70 day)
$10 000
-
$7 000
Current asset
Cash at bank
3 000
23 000
3 400
Current asset
Redeemable preference shares
(redeemable in two months)
6 000
-
-
Current liability
Bank overdraft
22 689
-
1 230
Cash and cash equivalents =
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Yellow Ltd requires you to determine, for each of the three scenarios below, the 'cash and cash equivalents' amount to include in its Statement of Cash Flows
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