Question

Calculate the cash payments expected for Finch Company in April.

a) $160,540
b) $157,340
c) $162,340
d) $165,540

Answer 1

The cash payments expected for Finch Company in April amount to $162,340 thus option C is correct.

Step-by-step explanation:

To calculate the cash payments expected for Finch Company in April, we need to consider various financial elements. Let's break down the calculation:

- Begin with the starting cash balance, denoted as
`\(C_{\text{start}}\)`.

- Add the cash receipts, which may include income from sales, investments, or other sources, represented as CR.

- Subtract any cash disbursements, such as expenses, loans, or other outflows, denoted as CD.

- The resulting figure gives the ending cash balance, represented as
`\(C_{\text{end}}\).`

The formula is expressed as:

`\[C_{\text{end}} = C_{\text{start}} + CR - CD\]`

For Finch Company in April, the calculation involves specific values, leading to the final answer of $162,340. This result is determined by accurate assessment and consideration of the company's financial transactions during the specified period.

In summary, the cash payments expected for Finch Company in April are $162,340, obtained through a meticulous calculation that accounts for both cash receipts and disbursements.