Use the following information to calculate the change in the company's cash balance for the year. Credit Sales $800,000 Cash Sales $500,000 Operating Expenses on Credit $200,000 Cash Operating Expenses $700,000 Accounts Receivable (Beg. of Year) $50,000 Accounts Receivable (End of Year) $80,000 Accounts Payable (Beg. of Year) $50,000 Accounts Payable (End of Year) $100,000 Income Taxes Paid $160,000

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Business

Braeden Ali

12 February, 00:26

Use the following information to calculate the change in the company's cash balance for the year. Credit Sales $800,000 Cash Sales $500,000 Operating Expenses on Credit $200,000 Cash Operating Expenses $700,000 Accounts Receivable (Beg. of Year) $50,000 Accounts Receivable (End of Year) $80,000 Accounts Payable (Beg. of Year) $50,000 Accounts Payable (End of Year) $100,000 Income Taxes Paid $160,000

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Aarav Pope · Answer 1

Cash generated from operating activities 460,000

Explanation:

Cash Sales 500,000

Credit sales collection

beginning AR 50,000

+ 800,000 credit sales

- ending AR 80,000 = 770,000

payment to providers

Accounts Payable beginning 50,000

+ Operating expenses credit 700,000

- Accounts Payable ending 100,000 = (650,000)

taxes paid (160,000)

Cash generated from operating activities 460,000