What is the amount of cash available at the end of the year?
Suppose that you have the following 2017 income statement of a company and you are preparing the cash flow statement at the end of 2017. Assume that the beginning cash was $200,000 and that the company has not paid its interest expense or taxes for that year. What is the amount of cash available at the end of the year?
2017 Income Statement | |
Sales Revenue | 100,000 |
– Cost of Goods Sold | 81,000 |
Gross Profits | 19,000 |
– Depreciation Expense | 7200 |
Operating Profits | 11,800 |
– Interest Expense | 500 |
Net Profits before Taxes | 11,300 |
– Taxes (40%) | 4520 |
Net Profits after Taxes | 6780 |
a. $205,020 | |||
b. $211,800 | |||
c. $219,000 | |||
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