Reference no: EM133039675

Problem - Alpaca Corporation had revenues of $300,000 in its first year of operations. The company has not collected on $19,900 of its sales and still owes $28,000 on $96,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $13,700 in salaries. Owners invested $19,000 in the business and $19,000 was borrowed on a five-year note. The company paid $4,600 in interest that was the amount owed for the year, and paid $8,600 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). Compute the cash balance at the end of the first year for Alpaca Corporation.