In 2012, Rodney Corporation's balance sheet had the following balances: cash, $306,500; accounts receivable, $471,400; and accounts payable, $390,800. During 2013, Rodney had a net increase in cash of $68,600 and net income of $47,800. Given this information, what is the cash balance that will be reported on Rodney's 2013 balance sheet?

Question

Quizplus · Accepted Answer

The cash balance at the end of 2013 is calculated by adding the net increase in cash during 2013 to the cash balance at the end of 2012. Thus, $306,500 (2012 cash balance) + $68,600 (net increase in cash) = $375,100.

In 2012, Rodney Corporation's Balance Sheet Had the Following Balances