Q & AValuation
ERIC KHOO asked 4 years ago

Hi Peter, KC,

I have a question on Cash which I asked in Telegram chat but have not received your reply.
In the Balance Sheet:
1. Cash & Short Term Investments = $475.4m
2. Cash only                                   = $71.1m
I believe this means the Short Term Investments = $404.3m
In the same report on Cash Flow it shows Net Cash Ending Balance = $369.7m
Pls adv :
a. what this means …..
    The difference between Cash Only in the Balance Sheet
    and Net Cash Ending Balance in the Cash Flow.
b. For Valuation purpose which one should I use.
Thank you.

2 Answers
KCLau Staff answered 4 years ago

Use the Cash + Cash Equivalent in the Balance Sheet.
In the asset column, it should not double count cash, then cash+Cash Equivalent. You will need to study the balance sheet whether the $475 m include the $71 m cash.

Maybe you can send the screenshot in the FB group.. it is easier to track and question and answer there.

ERIC KHOO answered 4 years ago

Hi KC,
Thanks for the reply.
The reason why I had to post the same question in this “Ask Question” is because I had already posted it in the Telegram chat but have not received any reply.
IF, after posting it in “Ask Question” and still not receive any reply I will the post it in an email directly to you and Peter. The point is I will do what is necessary when asking for assistance and I believe you guys have seen this before.

Nevertheless, appreciate your kind understanding and support.