Question

At the beginning of the year, Cash amounted to $100,000 for the Adams Company. At the end of the year, thetotal was $120,000. The relative change in cash from the beginning to the end of the year for this firm is:

Answer 1

The relative change in cash for the Adams Company is $20,000.

Step-by-step explanation:

The relative change in cash for the Adams Company can be calculated by subtracting the beginning cash amount from the ending cash amount. In this case, the relative change is $120,000 - $100,000 = $20,000. So, the relative change in cash for this firm is $20,000. The relative change in cash for the Adams Company from the beginning to the end of the year is calculated by subtracting the beginning cash balance from the ending cash balance, and then dividing by the beginning balance. So, the relative change can be found using the following formula: (Ending Cash Balance - Beginning Cash Balance) / Beginning Cash Balance. For the Adams Company, this calculation would be ($120,000 - $100,000) / $100,000, which equals 0.2 or 20% when expressed as a percentage.