Financial management

IPCC 344 views 1 replies

Dear Friends, 

Please if somebody can help me with the following doubt :

 

  I have a question regarding solution to Illustration Number 1 of the Chapter Cash Flow And Funds Flow Analysis (Ref. Page 3.47 of the Study Material of Cost Accounting and Financial Management printed in July 2011) :
 
On Page 3.50 (the solution), in note 1 (Cash and Cash Equivalents), it is written : 
" Cash and cash equivalents at the end of the period include deposits with banks of 100 held by a branch which are not freely permissible to the Company because of currency exchange restrictions.
 
The company has undrawn borrowing facilities of 2000 out of which 700 may be used only for future expansion."
 
My querry is : How have the above two conclusions being inferred in the notes from the problem ?
 
Thanks & regards.
 
Replies (1)

Point 1 - 100 are not cash and cash equivalents

Point 2 - only 1300 (2000-700) are cash and cash equivalents

pls wait and confirm by other's reply


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