Chapter 5, Problem 7E

Reporting Cash, Cash Equivalents, and Restricted Cash

Expedia, Inc., reported total cash of $1,862 million at September 30, 2016. Of this amount, $18 million was set aside and could be used only to fulfill the requirement of an aviation authority of a certain foreign country to protect against the potential nondelivery of travel services in that country in the short term. Another $542 million was invested in money market funds and time deposits with original maturities of less than 90 days. The remaining $1,302 million was held in bank accounts. Expedia also reported $46 million in short-term investments (maturing in 90–360 days), $299 million of deferred revenue, $1,384 million of accounts receivable, $328 million of prepaid insurance, and $8,027 of goodwill. Show the current assets section of Expedia’s balance sheet.

TIP: Some items are not current assets.