The balance sheet for Blineberry Corporation follows: Operating income during the period was $18,000, while cash dividends paid were $17,400. The total sources of cash at Blineberry Corporation during the year was
A)$40,950.
B)$8,200.
C)$48,050.
D)$12,050.

Question

The balance sheet for Blineberry Corporation follows:  Operating income during the period was $18,000, while cash dividends paid were $17,400. The total sources of cash at Blineberry Corporation during the year was
A)$40,950. 
B)$8,200. 
C)$48,050. 
D)$12,050.

Quizplus · Accepted Answer

To find the total sources of cash, we need to look at the change in cash balance on the balance sheet.

Beginning cash balance + Sources of cash - Uses of cash = Ending cash balance

We know that cash dividends paid were $17,400, and we can see that the ending cash balance is higher than the beginning cash balance by $30,650 ($69,850 - $39,200). Therefore:

$39,200 + Sources of cash - $17,400 = $69,850

Solving for sources of cash:

Sources of cash = $69,850 - $39,200 + $17,400 = $48,050

Therefore, the answer is choice C.

The Balance Sheet for Blineberry Corporation Follows: Operating Income