Occidental Petroleum Corporation reported the following information in a recent annualreport.
(a) What items other than coin and currency may be included in â€œcashâ€?
(b) What items may be included in â€œcash equivalentsâ€?
(c) What are compensating balance arrangements, and how should they be reported infinancial statements?
(d) What are the possible differences between cash equivalents and short-term(temporary) investments?
(e) Assuming that the sale agreement meets the criteria for sale accounting, cashproceeds were $345 million, the carrying value of the receivables sold was $360 million,and the fair value of the recourse liability was $15 million, what was the effect on incomefrom the sale of receivables?
(f) Briefly discuss the impact of the transaction in (e) on Occidentalâ€™s liquidity.