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13 January, 21:23

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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  1. 13 January, 21:32
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    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
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