Q & AValuation
ERIC KHOO asked 10 months 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 10 months 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 10 months 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.