TIGER LILY had the following account balances as of Dec. 31, 2019: P2,500,000 125,000 Cash in banks Cash on hand Cash legally restricted for additions to plant (expected to be disbursed in 2020) 1,600,000 Cash in banks includes P900,000 of compensating balances against short-term borrowing arrangements. The compensating balances are not legally restricted as to withdrawal by Tiger Lily. In the current section of Tiger Lily's balance sheet, total cash should be reported at a. P2,625,000 b. P2,250,000 c. P1,600,000 d. P1,725,000

TIGER LILY had the following account balances as of Dec. 31, 2019: P2,500,000 125,000 Cash in banks Cash on hand Cash legally restricted for additions to plant (expected to be disbursed in 2020) 1,600,000 Cash in banks includes P900,000 of compensating balances against short-term borrowing arrangements. The compensating balances are not legally restricted as to withdrawal by Tiger Lily. In the current section of Tiger Lily's balance sheet, total cash should be reported at a. P2,625,000 b. P2,250,000 c. P1,600,000 d. P1,725,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Exercise 1-6
TIGER LILY had the following account balances as of Dec. 31, 2019:
P2,500,000
125,000
Cash in banks
Cash on hand
Cash legally restricted for additions to plant (expected to be
disbursed in 2020)
1,600,000
Cash in banks includes P900,000 of compensating balances against short-term borrowing
arrangements. The compensating balances are not legally restricted as to withdrawal by Tiger
Lily. In the current section of Tiger Lily's balance sheet, total cash should be reported at
a. P2,625,000
b. P2,250,000
c. P1,600,000
d. P1,725,000

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