The following information is for Missouri,Inc.for the month of June: cash sales of $300,000; accounts receivable payments of $100,000; accounts payable payments of $250,000; wages and salaries of $150,000; and,interest payments of $50,000.There are no other cash inflows or outflows for the month of June and its beginning monthly cash balance is $100,000.What is the firm's ending cash balance for June?
A)$0
B)$50,000
C)$100,000
D)$150,000

Question

Quizplus · Accepted Answer

The firm's ending cash balance for June is calculated by adding all cash inflows to the beginning balance and then subtracting all cash outflows. Cash inflows include cash sales of $300,000 and accounts receivable payments of $100,000. Cash outflows include accounts payable payments of $250,000, wages and salaries of $150,000, and interest payments of $50,000. The calculation is as follows: $100,000 (beginning balance) + $300,000 + $100,000 (inflows) - $250,000 - $150,000 - $50,000 (outflows) = $50,000.

The Following Information Is for Missouri,Inc