Response to the following questions:
1. Seatow Inc. has a petty cash fund of $2,500.
(a) Since the petty cash fund is only $2,500, should Seatow Inc. implement controls over petty cash? (b) What controls, if any, could be used for the petty cash fund?
2. (a) How are cash equivalents reported in the financial statements? (b) What are some examples of cash equivalents?