A company had credit sales of $30,000 and cash sales of $10,000 during the month of May.Also during May,the company paid wages of $12,000 and utilities of $1,800.It also received payments from customers on account totaling $4,000.At the beginning of May,the company had a cash balance of $25,000.What is the company's Cash balance at the end of May?

Question

Quizplus · Accepted Answer

- Beginning cash balance: $25,000
- Cash sales: +$10,000
- Payments for wages and utilities: -$12,000 -$1,800
- Credit sales: these are not cash yet and do not affect the cash balance
- Customer payments: +$4,000

Ending cash balance: $25,000 + $10,000 - $12,000 - $1,800 + $4,000 = $25,200.

A Company Had Credit Sales of $30,000 and Cash Sales