Cash in banks $1,300,000 Petty cash funds (all funds were reimbursed on December 31, 2019) Cash legally restricted for additions to plant (expected to be disbursed in 2021) 20,000 2,000,000
Cash in banks $1,300,000 Petty cash funds (all funds were reimbursed on December 31, 2019) Cash legally restricted for additions to plant (expected to be disbursed in 2021) 20,000 2,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Greenfield Company had the following cash balances at December 31, 2019:
Cash in banks includes $300,000 of compensating balances against short-
term borrowing arrangements at December 31, 2019. The compensating
balances are not legally restricted as to withdrawal by Greenfield. In the
current assets section of Green-field's December 31, 2019,
what total amount should be reported as cash?
a. $1,020,000
b. $1,320,000
c. $3,020,000
d. $3,320,000
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