CashCow, Inc. Financial Data 1996

Financial Data of CashCow, Inc. for 1996

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Question

The following financial data on CashCow, Inc. have been taken from its financial statements for 1996:

Answers

A. $157,600

B. $121,600

C. $139,600

D. $172,400

E. Bonds issued $90,000 F Dividends received from investments $17,000

G. Interest paid on bonds $2,400

H. Salaries paid $107,400

I. Cash collection from customers $28,400

J. Loss on land sale $18,000 K. Beginning cash balance $312,000 In the above question, the ending cash balance of the firm was ________.

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Explanations

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A. B. C. D. E. G. H. I. J.

Note that the loss on equipment is a non-cash event. Using the direct method, beginning cash balance + net cash inflow = ending cash balance Hence, ending balance = 312,000 + (-25,000+64,000-29,000 - 208,000 + 90,000 + 17,000 - 2,400 - 107,400 + 28,400) = $139,600.

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