Question: 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.
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 = | $ | $ |
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