XYZ Corporation had revenues of $350,000 in its first year of operations. The company has not collected on $70,000 of its sales and still owes $50,000 on $180,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The company paid $60,000 in salaries. The owners invested $30,000 in the business and $40,000 was borrowed on a five-year note. The company paid $4,000 in interest that was the amount owed for the year and paid $12,000 for a three-year insurance policy on the first day of business. Copy the question below and answer in the space provided: 1.) Compute the cash balance at the end of the first year for XYZ Corporation. 2.) Compute accrual based net income for the first year of operations for XYZ Corporation.

XYZ Corporation had revenues of $350,000 in its first year of operations. The company has not collected on $70,000 of its sales and still owes $50,000 on $180,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The company paid $60,000 in salaries. The owners invested $30,000 in the business and $40,000 was borrowed on a five-year note. The company paid $4,000 in interest that was the amount owed for the year and paid $12,000 for a three-year insurance policy on the first day of business. Copy the question below and answer in the space provided: 1.) Compute the cash balance at the end of the first year for XYZ Corporation. 2.) Compute accrual based net income for the first year of operations for XYZ Corporation.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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