Solution-Compute the cash balance at the end of the first

Compute the cash balance at the end of the first year

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Reference no: EM132684109

Question - Alpaca Corporation had revenues of $305,000 in its first year of operations. The company has not collected on $20,000 of its sales and still owes $28,100 on $96,500 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $13,800 in salaries. Owners invested $19,500 in the business and $19,500 was borrowed on a five-year note. The company paid $4,700 in interest that was the amount owed for the year, and paid $8,700 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. (Assume taxes are paid in the same year).

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

Reference no: EM132684109

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Compute the cash balance at the end of the first year

Reference no: EM132684109

Reference no: EM132684109

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