Reference no: EM131809973
The controller for Cullumber Company is trying to determine the amount of cash to report on the December 31, 2017 statement of financial position. The following information is provided:
1. A commercial savings account with $618,600 and a commercial chequing account balance of $911,300 are held at First National Bank. There is also a bank overdraft of $33,900 in a chequing account at the Royal Scotia Bank. No other accounts are held at the Royal Scotia Bank.
2. Cullumber has agreed to maintain a cash balance of $98,400 at all times in its chequing account at First National Bank to ensure that credit is available in the future.
3. Cullumber has a $5.2-million investment in a Commercial Bank of Montreal money-market mutual fund. This fund has chequing account privileges.
4. There are travel advances of $16,500 for executive travel for the first quarter of next year. (employees will complete expense reports after they travel.)
5. A separate cash fund in the amount of $1.4 million is restricted for the retirement of long-term debt.
6. There is a petty cash fund of $3,100.
7. A $1,970 IOU from Marianne Koch, a company officer, will be withheld from her salary in January 2018.
8. There are 20 cash floats for retail operation cash registers: 8 at $460, and 12 at $560.
9. The company has two certificates of deposit, each for $534,800. These certificates of deposit each had a maturity of 120 days when they were acquired. One was purchased on October 15 and the other on December 27.
10. Cullumber has received a cheque dated January 12, 2018, in the amount of $22,300 from a customer owing funds at December 31. It has also received a cheque dated January 8, 2018, in the amount of $10,400 from a customer as an advance on an order that was placed on December 29 and will be delivered February 1, 2018.
11. Cullumber holds $2.1 million of commercial paper of Oriole Company which is due in 60 days.
12. Currency and coin on hand amounted to $7,010.
13. Cullumber acquired 930 shares of Sortel for $4.0 per share in late November and is holding them for trading. The shares are still on hand at year end and have a fair value of $4.2 per share on December 31, 2017.
What would be considered cash to calculate the cash available as at December 31?