On december 31, a company has the following bank accounts and corresponding cash balances: california bankoperating – summit ridge ($400,000)operating – bakersville 300,000operating – smithville 50,000savings 500,000sedona bankchecking ($375,000)how should the company report the above bank account balances in the balance sheet at december 31? a. cash of $75,000.b. cash of $450,000 and a liability of $375,000.c. cash of $850,000 and a liability of $775,000.d. cash of $800,000 and a liability of $725,000.