Use the following information for the next five questions.Presented below are relevant extracts from TIYAGA Company's statement of financialposition as of December 31, 2023.Cash and cash equivalentsTrade and other receivablesInventoriesPage 1 of 3- AUDITING AND ASSURANCE: CONCEPTS AND APPLICATIONS 1●●During the course of your audit, you noted the following.Cash and cash equivalentsThe following were included in Cash and cash equivalents:Customer's check for P100,000 returned by bank on December 29, 2023 due toinsufficient fund but subsequently redeposited and cleared by the bank onJanuary 3, 2024.Customer's check for P200,000 dated January 2, 2024, received on December 29,2023.Cash earmarked for bonds payable due on June 30, 2024, P5,000,000.P1,000,000 of compensating balance against short-term borrowing arrangementat December 31, 2023. The compensating balance is legally restricted as towithdrawal.●Check written and dated December 29, 2023 and delivered to payee on January2, 2024, P500,000.●Check written on December 27, 2023, dated January 2, 2024, delivered to payeeon December 29, 2023, P800,000.One-year certificate of deposit, P2,000,000.Other current assetsTrade and other payablesShort term borrowingsOther current liabilitiesTrade and other receivablesThe following were included in Trade and other receivables:Advances to an associate, P5,000,000. The settlement is neither plannednor likely to occur in the foreseeable future.● Share subscriptions receivable due on March 31, 2024, P900,000.Accounts receivable used as collateral, P10,000,000.●P12,000,00038,000,00016,000,000InventoriesNot included in the physical count of inventory is P300,000 ofmerchandise purchased on December 15. This merchandise was shippedf.o.b. shipping point on December 29 and arrived on January 3. Theinvoice arrived and was recorded on January 3.●3,000,00034,000,00015,000,0002,000,000●11.Not included in inventory is P800,000 of merchandise purchased from asupplier. The merchandise was received on December 31 after theinventory had been counted. The invoice was received and recorded onDecember 30.Included in inventory was P700,000 of inventory held by TIYAGA onconsignment from Eagles Corporation.Included in inventory is merchandise sold f.o.b. shipping point. Thismerchandise was shipped after it was counted. The invoice was prepared.Page 2 of 3 - AUDITING AND ASSURANCE: CONCEPTS AND APPLICATIONS 115.Included in inventory is merchandise sold on December 30, f.o.b.destination. This merchandise was shipped after it was counted. Theinvoice was prepared and recorded as a sale on account for P400,000 onDecember 31. The merchandise cost P320,000, and the customer receivedit on January 3.Included in inventory was merchandise received on December 31 with aninvoice price of P600,000. The merchandise was] shipped f.o.b.destination. The invoice, which has not yet arrived, has notbeenrecorded.Questions: Based on the above and the result of your audit, determine the adjustedamount of the following as of December 31, 2023:Cash and cash equivalentand recorded as a sale for P750,000 on December 31. The cost of thismerchandise was P600,000, and the customer received the merchandise onJanuary 5.Working capital

Cash and cash equivalents: The adjusted amount of Cash and cash equivalents as of December 31, 2023…

Use the following information for the next five questions. Presented below are relevant extracts from TIYAGA Company's statement of financial position as of December 31, 2023. Cash and cash equivalents Trade and other receivables. Inventories Page 1 of 3- AUDITING AND ASSURANCE: CONCEPTS AND APPLICATIONS 1 ● ● During the course of your audit, you noted the following. Cash and cash equivalents The following were included in Cash and cash equivalents: ● Customer's check for P100,000 returned by bank on December 29, 2023 due to insufficient fund but subsequently redeposited and cleared by the bank on January 3, 2024. Customer's check for P200,000 dated January 2, 2024, received on December 29, 2023. Cash earmarked for bonds payable due on June 30, 2024, P5,000,000. P1,000,000 of compensating balance against short-term borrowing arrangement at December 31, 2023. The compensating balance is legally restricted as to withdrawal. ● ● ● ● Check written and dated December 29, 2023 and delivered to payee on January 2, 2024, P500,000. ● Other current assets Trade and other payables Short term borrowings Other current liabilities. Check written on December 27, 2023, dated January 2, 2024, delivered to payee on December 29, 2023, P800,000. One-year certificate of deposit, P2,000,000. P 12,000,000 38,000,000 16,000,000 Trade and other receivables The following were included in Trade and other receivables: Advances to an associate, P5,000,000. The settlement is neither planned nor likely to occur in the foreseeable future. ● Share subscriptions receivable due on March 31, 2024, P900,000. Accounts receivable used as collateral, P10,000,000. ● 3,000,000 34,000,000 15,000,000 2,000,000 ● Inventories Not included in the physical count of inventory is P300,000 of merchandise purchased on December 15. This merchandise was shipped f.o.b. shipping point on December 29 and arrived on January 3. The invoice arrived and was recorded on January 3. Included in inventory is merchandise sold on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for P400,000 on December 31. The merchandise cost P320,000, and the customer received it on January 3. ● ● Included in inventory was merchandise received on December 31 with an invoice price of P600,000. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded. Included in inventory was P700,000 of inventory held by TIYAGA on consignment from Eagles Corporation. Included in inventory is merchandise sold f.o.b. shipping point. This merchandise was shipped after it was counted. The invoice was prepared Page 2 of 3- AUDITING AND ASSURANCE: CONCEPTS AND APPLICATIONS 1 Not included in inventory is P800,000 of merchandise purchased from a supplier. The merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30. and recorded as a sale for P750,000 on December 31. The cost of this