Jenna Jeffries started her business baking dog treats by investing cash of $1000.During May its first month of operations Jenna's Barkery had revenues of $3000 all of which was collected in cash.She paid her assistant $1000 in cash and purchased $200 of supplies on account.The business paid cash dividends of $500.Use the following tabular analysis to determine the balance in Cash at the end of the month.

Question

Quizplus · Accepted Answer

Starting cash balance = $1000
Cash inflows:
- Revenues collected in cash = $3000
Total cash inflows = $3000

Cash outflows:
- Paid assistant in cash = $1000
- Purchased supplies on account = $200 (no cash outflow since paid on account)
- Paid cash dividends = $500
Total cash outflows = $1500

Ending cash balance = Starting cash balance + Total cash inflows - Total cash outflows
= $1000 + $3000 - $1500
= $2500

Therefore, the balance in Cash at the end of the month is $2500 which corresponds to choice D.

Jenna Jeffries Started Her Business Baking Dog Treats by Investing