Chapter 8, Problem 8.3BYP

(a)

To determine

Cash and cash equivalents:

Cash and cash equivalents can be defined as cash at hand and cash at bank, checks, or money orders that can be easily converted to cash with a maturity period of less than three months. Cash is recorded in two financial statements of the firms, which includes the balance sheet and the statement of cash flows. The balance sheet shows the position of cash at a particular point of time. The statement of cash flows shows the sources and applications of cash during a time period.

To determine: The items mentioned in (1), (2), and (3) for each company.

(b)

To determine

The conclusions concerning the management of cash that can be drawn from the data.