Liquid Assets
(liquid assets) = Bonds + Stocks + (Cash, Cash Equivalents, & Short-Term Investments) + (Receivable for Securities) + (Investment Income Due & Accrued) – (Investments in Parent, Subsidiaries, & Affiliates)
Why are Investments in Parent, Subsidiaries, & Affiliates subtracted out? I understand this is long-term investment, but why isn't it excluded from the equation completely?
Comments
"Investments in Parent, Subsidiaries, & Affiliates" comes from Page 17, Five-Year Historical Data. There in turn, it comes from Schedule D, listing of bonds and stocks. The "Bonds" and "Stocks" items are the subtotals from Schedule D, which include "Investments in Parent, Subsidiaries, & Affiliates". Since affiliates bear a shared risk with the reporting company, the portion of Bonds and Stocks from them are not considered liquid, and therefore taken out of the Bond and Stock totals.