Reference no: EM132905868

During the year, Williams Company performed services for which customers paid or promised to pay $587,000. Of this amount, $552,000 had been collected by year end. Williams paid $340,000 in cash for employee wages and still owed the employees $15,000 at the end of the year for work that they had done. Williams paid interest expense of $3,000 and $195,000 for other service expenses. The income tax rate was 35%, and income taxes had not yet been paid at the end of the year. Williams declared and paid dividends of $20,000. There were no other events that affected cash. Williams had a cash balance of $40,000 at the beginning of the year.

Problem 1: What would the end-of-year cash balance be for Williams Company?

Group of answer choices

Option 1: $34,000
Option 2: $43,000
Option 3: $37,000
Option 4: $40,000