Question

A company had credit sales of​ $30,000 and cash sales of​ $10,000 during the month of may. also during​ may, the company paid wages of​ $12,000 and utilities of​ $1,800. it also received payments from customers on account totaling​ $4,000. at the beginning of​ may, the company had a cash balance of​ $25,000. what is the​ company's cash balance at the end of​ may?

a. ​$21,200
b. ​$25,200
c. ​$39,000
d. ​$35,000

Answer 1

The profit during the month was $44,0000, with $30,000 in credit and $14,000 in cash. The money they spent was $13,800. So the total cash at the end was $25,200.