Compute the cash balance at the end of the first year

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Question - Alpaca Corporation had revenues of $310,000 in its first year of operations. The company has not collected on $20,100 of its sales and still owes $28,200 on $97,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $13,900 in salaries. Owners invested $20,000 in the business and $20,000 was borrowed on a five-year note. The company paid $4,800 in interest that was the amount owed for the year, and paid $8,800 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 34%.

Compute the cash balance at the end of the first year for Alpaca Corporation.

$ 169,034

$ 192,711

$ 224,711

$ 203,711

Reference no: EM132088878

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