Question

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

Answer 1

Cash generated from operating activities 460,000

Step-by-step 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