Cash account balance During the month, Bavarian Auto Co. received $476,500 in cash and paid out $402,150 in cash. a. Does this information indicate that Bavarian Auto Co. had net income of $74,350 during the month? Net income transactions. the net change in all assets and liabilities from operating (revenue and expense) b. If the balance of the cash account is $107,700 at the end of the month, what was the cash balance at the beginning of th month?

Cash account balance During the month, Bavarian Auto Co. received $476,500 in cash and paid out $402,150 in cash. a. Does this information indicate that Bavarian Auto Co. had net income of $74,350 during the month? Net income transactions. the net change in all assets and liabilities from operating (revenue and expense) b. If the balance of the cash account is $107,700 at the end of the month, what was the cash balance at the beginning of th month?

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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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

Cash account balance
During the month, Bavarian Auto Co. received $476,500 in cash and paid out $402,150 in cash.
a. Does this information indicate that Bavarian Auto Co. had net income of $74,350 during the month?
Net income
transactions.
the net change in all assets and liabilities from operating (revenue and expense)
b. If the balance of the cash account is $107,700 at the end of the month, what was the cash balance at the beginning of the
month?

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