As of the beginning of the quarter, Callahan's had a cash balance of $710. During the quarter, the company collected $1,860 from customers and paid suppliers $1,520. The company also paid a loan payment of $320 and a tax payment of $510. What is Callahan's cash balance at the end of the quarter?

Question

Quizplus · Accepted Answer

Starting cash balance = $710
Cash inflows = $1,860
Cash outflows = $1,520 + $320 + $510 = $2,350

Net cash flow = Cash inflows - Cash outflows = $1,860 - $2,350 = -$490

Ending cash balance = Starting cash balance + Net cash flow = $710 - $490 = $220

Therefore, the answer is C) $220.

As of the Beginning of the Quarter, Callahan's Had a Cash