Kristoff Walker operates his own catering service. Summary financial data for February are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in owner's equity, except transaction (5), affects net income ...

Assets = Liabilities + Owner's Equity

Cash + Supplies + Land = Accounts Payable + Kristoff Walker, Capital - Kristoff Walker, Drawing + Fees Earned - Expenses

Bal. 34,700 4,500 86,800 9,400 116,600

1. + 40,600 + 40,600

2. - 17,400 + 17,400

3. - 30,200 - 30,200

4. + 1,700 + 1,700

5. - 2,300 - 2,300

6. - 8,300 - 8,300

7. - 3,500 - 3,500

Bal. 17,100 2,700 104,200 2,800 116,600 - 2,300 40,600 - 33,700.

What is the amount of the net decrease in cash during the month?

Question

Jan Spence

Business

7 January, 04:32

Kristoff Walker operates his own catering service. Summary financial data for February are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in owner's equity, except transaction (5), affects net income ...

Assets = Liabilities + Owner's Equity

Cash + Supplies + Land = Accounts Payable + Kristoff Walker, Capital - Kristoff Walker, Drawing + Fees Earned - Expenses

Bal. 34,700 4,500 86,800 9,400 116,600

1. + 40,600 + 40,600

2. - 17,400 + 17,400

3. - 30,200 - 30,200

4. + 1,700 + 1,700

5. - 2,300 - 2,300

6. - 8,300 - 8,300

7. - 3,500 - 3,500

Bal. 17,100 2,700 104,200 2,800 116,600 - 2,300 40,600 - 33,700.

What is the amount of the net decrease in cash during the month?

+1

Answers (1)

Know the Answer?

Jovani Mcbride · Answer 1

- $17,600

Explanation:

The computation of the net decrease in cash during the month is shown below:

= $40,600 - $17,400 - $30,200 - $2,300 - $8,300

= - $17,600

After calculating the items which are presented in the column 1 represent the net decrease in cash for $17,600 amount.

The net decrease in cash represents an outflow of cash. In this, the chances of loss may be higher than the loss.