As of the beginning of the quarter, you have a cash balance of $250. During the quarter you pay your suppliers $310. Your accounts receivable collections are $420. You also pay an interest
Payment of $30 and a tax bill of $180. In addition, you borrow $75. What is your cash balance at the
End of the quarter?

Question

Quizplus · Accepted Answer

The correct answer is A. The cash balance at the beginning of the quarter is $250. During the quarter, the company pays its suppliers $310, collects $420 from accounts receivable, pays $30 in interest, and pays $180 in taxes. The company also borrows $75. The net change in the cash balance is $420 - $310 - $30 - $180 + $75 = $225. Therefore, the cash balance at the end of the quarter is $250 + $225 = $475.

As of the Beginning of the Quarter, You Have a Cash