Western Country Corporation made sales of $ 850 million during 2018. Of this amount, Western Country collected cash for $ 710 million. The company's cost of goods sold was $ 255 million, and all other expenses for the year totaled $ 425 million. Also during 2018 , Western Country paid $ 400 million for its inventory and $ 285 million for everything else. Beginning cash was $ 85 million.

Question

Harold Brennan

Business

31 March, 02:38

Western Country Corporation made sales of $ 850 million during 2018. Of this amount, Western Country collected cash for $ 710 million. The company's cost of goods sold was $ 255 million, and all other expenses for the year totaled $ 425 million. Also during 2018 , Western Country paid $ 400 million for its inventory and $ 285 million for everything else. Beginning cash was $ 85 million.

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Answers (1)

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Ciara Strickland · Answer 1

We have to find Western Country Corporation's net income, and cash balance at the end of 2018.

The answers are:

Net Income = $200 million

Ending cash balance = $100 million

Explanation:

Net income is equal to sales revenue - cost of goods sold - other expenses

Net Income = $850 million - $255 million - 425 million

= $200 million

Ending cash balance is equal to beginning cash + cash receipts (inflows) - cash payments (outflows)

Ending cash balance = $85 million + $710 million - $400 million - $285 million

= $110 million