have an original maturity of three months or less when purchased. The Company maintains cash and cash equivalents with various financial institutions in the United States. As of June 30, 2018, and 2017, a cash balance of $84,865 and $46,279, respectively, was maintained at U.S. financial institutions and were insured by the Federal Deposit Insurance Corporation or other programs subject to certain limitations.
Example 6.6: Amount of Interest and Income Taxes Paid and Noncash Investing and Financing Activities
| Supplemental Cash Flow Information | ||
| Cash paid for interest, net of amount capitalized | $39,213 | $41,954 |
| Noncash Investing and Financing Activities | ||
| Equipment acquired with notes payable—equipment | — | $82,229 |
| Equipment acquired with obligation under capital lease | — | 165,816 |
| Accounts payable paid with exchange of equity | — | 63,000 |
| Equipment note revised through repossession of equipment | $87,912 | |
Example 6.7: Amount of Interest and Income Taxes Paid and Noncash Investing and Financing Activities
| Supplemental Cash Flow Information | |
| Cash paid for interest | $23,700 |
| Cash paid for income taxes | $35,700 |
| Noncash investing and financing transactions | |
| Derivative liability of convertible secured promissory note | $75,957 |
| Common stock issueds for debt inducement | $36,720 |
Example 6.8: Nature of Restrictions on Cash and Cash Equivalents
Restricted Cash At June 30, 20X8, Best Foods had on deposit approximately $20,000 securing a lease bond for one of its properties. The cash securing the bond is restricted from access or withdrawal so long as the bend remains in place.
Example 6.9: Nature of Restrictions on Cash and Cash Equivalents with Internal Reference
Restricted Cash Restricted cash includes cash balances that are legally or contractually restricted to use. The Company's restricted cash as of July 31, 20X6, included proceeds that were placed in escrow in connection with the sale of a restaurant. See Note 3.
Example 6.10: Disclosure in Tabular Format—Restricted Cash Presented in More Than One Line Item on the Balance Sheet
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows.
| Current Presentation | July 31, 20X8 | July 31, 20X7 | July 31, 20X6 |
| Cash and cash equivalents | $24,436 | $20,708 | $12,428 |
| Restricted cash | — | — | 1,000 |
| Total cash, cash equivalents, and restricted cash | $24,436 | $20,708 | $13,428 |
7 ASC 235 NOTES TO FINANCIAL STATEMENTS
1 Authoritative Literature Subtopic Scope Disclosure Techniques Parenthetical Explanations Example—Parenthetical Explanations Notes to Financial Statements Example—Internal Reference to Note Cross‐References Example—Cross‐References to Other Line Items Valuation Allowances or Contra Accounts Example—Valuation Allowances or Contra Accounts
2 Practice Alert FASB Initiative SEC Initiative Suggestions for Improving Disclosure Effectiveness
4 Disclosure Examples Accounting Period Example 7.1: Fiscal Period Example 7.2: Change in Fiscal Year‐End Accounts Receivable Example 7.3: Receivables and Allowances for Doubtful Accounts and Composition of Other Receivables Example 7.4: Accounts Receivable, Including Amounts of Allowance Accounts Advertising
