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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