Cole Pharmaceuticals has been sued for damages as the result of accidental deaths caused by a newly released drug

Cole Pharmaceuticals has been sued for damages as the result of accidental deaths

caused by a newly released drug. The lawsuit has already cost them $1.6 million, and

they expect additional related lawsuits to cost them $7.4 million. Therefore, Cole

restricted $5 million in cash to partially cover the costs of the lawsuits. Cole would likely

disclose the relationship between the restricted cash and the lawsuit liabilities with a

Relationships between asset accounts and liability accounts are often disclosed

through a cross-reference. While the nature of the lawsuit may be disclosed in a note,

the relationship between the restricted cash and the lawsuit liabilities should be

disclosed through a cross-reference.