Li Ltd requires you to determine, for the two scenarios below, the ‘cash and cash equivalents’ amount to include in its Statement of Cash Flows.

	Scenario 1	Scenario 2
Cash at bank	$20 000	$33 000
Short term investment (45 day)	-	$70 000
Foreign bank account (insignificant risk of change in value)	3 000	-
Short term investment (120 day)	10 000	-
Redeemable preference shares (redeemable in three years)	-	3 500
Petty cash	-	50
Bank overdraft	7 680	-
Redeemable preference shares (redeemable in 60 days)	-	15 000
Cash and cash equivalents =	$	$

Answer rating: 100% (QA)

Details Scenario 1 Transaction impact on cash Calculation Scenario 2 Transaction impact on cash Calc... View the full answer