Question

Kendall business spent more money than it collected, the businesses balenece sheet showed a balence of -$1,280 at the end of the month. The next day, Kendall's business spent $560 on new tools. Kendall determines the new balence is -$720 because 1,280 + 560 = -720Did Kendall correctly determine the new balence? Explain why or why not

Answer 1

He did not determine his new balance correctly. His balance now is $-1,840

1) Gathering the data

$-1,280 negative balance

Kendall spent $560, so money out then: $-560

2) So Kendall did not determine correctly the new balance, since He was in debt, and has increased negatively

-1,280-560 =-1,840

3) So the answer is no, He did not determine his new balance correctly. His balance now is $-1,840