Alpaca Corporation had revenues of $200,000 in its first year of operations. They have not collected on $20,000 of their sales, and still, owe $25,000 on $70,000 of merchandise they purchased. The company had no inventory on hand at the end of the year. The company paid $10,500 in salaries. Owners invested $18,000 in the business and $20,000 was borrowed on a five-year note. The company paid $2,000 in interest that was the amount owed for the year and paid $6,000 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%.

Compute the cash balance at the end of the first year for Alpaca Corporation.

Answer rating: 100% (QA)

A C 1 Particulars Amount Amount 2 Revenue 200000 3 L... View the full answer