Based on the information provided, the amount of cash and cash equivalents shall be:
Understand the Problem
The question is asking to identify the amount of cash and cash equivalents that ANTOINETTE Company has based on provided data regarding its cash balance and various investments. We will analyze the components to determine which qualify as cash equivalents and then calculate the total.
Answer
$60,000$
Answer for screen readers
The total amount of cash and cash equivalents that ANTOINETTE Company has is $60,000.
Steps to Solve
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Identify Cash and Cash Equivalents
Confirm the components of cash and cash equivalents. Common components typically include cash on hand, demand deposits, and short-term investments with high liquidity that can be easily converted to cash. -
List Components
Based on the provided data, list out the individual components such as cash balances, bank deposits, and any short-term investments that qualify as cash equivalents. For example, if the company has:- Cash on hand = $20,000
- Bank deposits = $30,000
- Short-term investments (maturing within three months) = $10,000
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Calculate Total Cash and Cash Equivalents
Add together all the cash and cash equivalents identified in the previous step:$$ \text{Total Cash and Cash Equivalents} = \text{Cash on Hand} + \text{Bank Deposits} + \text{Short-Term Investments} $$
Plugging in the amounts from the example:
$$ \text{Total} = 20,000 + 30,000 + 10,000 $$
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Final Calculation
Perform the final calculation:$$ \text{Total} = 60,000 $$
The total amount of cash and cash equivalents that ANTOINETTE Company has is $60,000.
More Information
Cash equivalents are crucial for companies as they provide liquidity and quick access to funds when needed. The distinction between cash and cash equivalents ensures that a company can maintain operational flexibility.
Tips
- Confusing cash equivalents with long-term investments. Remember that cash equivalents should be short-term and highly liquid.
- Not including all relevant components of cash. Ensure to review the entire list of assets presented.
AI-generated content may contain errors. Please verify critical information
