Madden Company has supplied the following information for 20X0: $\begin{array}{ll}
\text { Cash balance, January 1 } & \$ 32,000 \
\text { Tot al revenues } & 425,000 \
\text { Total expenses } & 435,000
\end{array}$ All revenues are collected when earned and all expenses are paid as incurred. The total expenses include
$21,000 of depreciation.
Required:
a. How much profit did Madden Company earn during 20X0?
b. What was the ending balance of cash?
c. Explain how cash increased during the year.

Question

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The Answer of Madden Company has supplied the following information for 20X0: $\begin{array}{ll}
\text { Cash balance, January 1 } & \$ 32,000 \
\text { Tot al revenues } & 425,000 \
\text { Total expenses } & 435,000
\end{array}$ All revenues are collected when earned and all expenses are paid as incurred. The total expenses include
$21,000 of depreciation.
Required:
a. How much profit did Madden Company earn during 20X0?
b. What was the ending balance of cash?
c. Explain how cash increased during the year.

Madden Company Has Supplied the Following Information for 20X0 All Revenues Are Collected When Earned and All Expenses Are