Answer:
$4,400,000
Explanation:
Cash and cash equivalent are cash and other liquid financial instruments that are convertible to cash within a short period (usually 3 months).
These items are presented in the balance sheet as the cash and cash equivalent as at the end of the given period.
From the items given;
Cash pledged as collateral $ 2 comma 000 comma 000 U.S - Yes, part of cash and cash equivalent
Treasury bill due in one month (purchased six months ago) $ 2 comma 000 comma 000 - Yes, part of cash and cash equivalent
U.S. Treasury bill due in one year (purchased yesterday) $ 2 comma 500 comma 000 - No, not a part of cash and cash equivalent
Cash in checking account $ 400 comma 000 - Yes, part of cash and cash equivalent
Total cash and cash equivalent
= $2,000,000 + $2,000,000 + $400,000
= $4,400,000
