Cash & Cash Equivalents PAS 7 — Statement of Cash flows Cash - most liquid assets, cash on hand and demand deposits unrestricted. Cash Equivalents - Short term highly liquid investments readily convertible to cash. *Presented as one line item in the balance sheet. Included as part of Cash: 1. Current Account 2. Checking Account 3. Demand Deposit Cash Equivalents: 1. Time Deposit ~ Problem silent (part of cash equivalent). 2. Travellers Check and Money Order. 3. Money Market Placement — 3 months acquired before date of maturity. 4, T - Bills —3 months acquired before date of maturity. Excluded from Cash: 1. Postdated Checks. 2. 10US 3. Foreign account restricted to withdrawal. 4, Compensating Balance restricted. 5. NSF Checks. 6. Money on closed bank account 7. Bank overdraft — Current Liability (can be offset if maintained with same Bank Account ).The following information were taken from B Company’s records, compute for the cash and cash equivalents for the end December 31, 2016: Manager’s checks P100,000 v Traveler’s checks 100,000 v Treasury note Treasury shares Escrow deposit Bank drafts 50,000 Assumed investment (silent) 200,000 Deduction to SHE 100,000 Noncurrent Asset 100,000 v Postal money orders 100,000 v Demand deposit 100,000 v Treasury bills, purchased 12/16/2016 due 03/15/17 100,000 v 160-day treasury bill Time deposit- PCIB, one year, due March 31, 2017 Time deposit- PNB- 90 days 100,000 Short-term investment 100,000 Short-term investment 100,000 v Time deposit- BPI- 120 days Money market instrument- due date 02/28/17 100,000 Short-term investment 100,000 v Money market instrument- due date 06/01/17 Cash in bank- Metrobank, which includes a compensating balance of P50,000 for short-term borrowing arrangement. The compensating balance is not legally restricted as to withdrawal 100,000 Short-term investment 100,000 v Cash in bank- Metrobank Cash in bank- Fistbank, which includes a compensating balance of P50,000 for long-term borrowing arrangement. The compensating balance is legally restricted as to drawings (50,000)¥ “deduction to same account” 200,000 Y_ “-50.000 rastrictedCash in bank- Second bank Cash in bank- Seatacbank, which includes a compensating balance of P50,000 for short-term borrowing arrangement. The compensating balance is legally restricted as to (P50,000) withdrawal. 100,000 Cash in bank-Seabank, which includes a compensating balance of P50,000 for short-term borrowing arrangement 100,000 Petty cash fund, which includes an unreplenished voucher for P50,000. 100,000 Payroll fund 50,000 Travel fund 50,000 Interest fund 50,000 Tax fund 50,000 Sinking fund 100,000 Preferred redemption fund 100,000 Contingent fund 100,000 Insurance fund 100,000 Fund for acquisition of PPE expected to be disbursed in 2017 200,000 1OU from officers 100,000 Customer’s post-dated checks 100,000 Customer’s checks returned by bank marked “NSF” 50,000 Redeemable preferred shares- acquired 3 months to maturity date 100,000 Unused credit line 100,000 Revolving fund 100,000 Visa Card-credit limit ° 100.000 Current liability v¥ “50,000 restricted” v¥ “unrestricted if silent” v “-50,000 unreplenished” KAA K Noncurrent investment Noncurrent investment Noncurrent investment Noncurrent investment Noncurrent investment Receivable Receivable Receivable v Disclose v lsnore