As of the beginning of the quarter, Callahan, Inc. had a cash balance of $320. During the quarter the company paid suppliers $230. The company collected $400 from customers. The company also paid an interest payment of $40 and $170 in taxes. In addition, the company borrowed $100. What is Callahan's cash balance at the end of the quarter?

Question

Quizplus · Accepted Answer

The cash balance at the end of the quarter is calculated as the initial cash balance plus cash inflows minus cash outflows. Starting with $320, adding $400 from customers and $100 from borrowing, then subtracting $230 paid to suppliers, $40 in interest, and $170 in taxes gives a final balance of $380.

As of the Beginning of the Quarter, Callahan, Inc