Question

ABC Company has identified the following information related to its cash budget for October: Beginning cash balance = $20,000; Cash receipts from sales = $100,000; Cash payments for purchases = $50,000; Proceeds from borrowings = $25,000; Payments for other manufacturing expenses = $40,000; Payments for operating expenses = $35,000; Dividend payment = $10,000; Ending cash balance = $_____.

Answer 1

A bank's T-account balance sheet displays its assets, liabilities, and net worth. The net worth of the bank can be calculated by subtracting the total liabilities from the total assets.

Step-by-step explanation:

A bank's T-account balance sheet displays its assets and liabilities.

Assets:

Reserves: $50

Government bonds: $70

Loans: $500

Liabilities:

Deposits: $400

The net worth of the bank can be calculated by subtracting the total liabilities from the total assets. Therefore, the net worth of the bank is $220.