Question: The chief financial officer of Afton Ltd Afton is trying

The chief financial officer of Afton Ltd. (Afton) is trying to determine the amount of cash the company had on hand one month ago on
March 1, 2017. The company’s computer system has lost the information. Use an accounting equation spreadsheet and the following information to determine the information the CFO requires. Afton Ltd. had a cash balance of $125,000 on
March 31, 2017.
a. On March 15, Afton purchased equipment costing $100,000 by paying $20,000 in cash and promising to pay the remainder in 90 days.
b. On March 20, Afton made payments of $10,000 on its bank loan.
c. During March, Afton had sales of $175,000. $25,000 of the sales were for cash, the rest on credit.
d. During March, Afton collected $110,000 from customers who had made credit purchases and paid suppliers $90,000.
e. During March, Afton paid employees $32,000 for work done during the month.
f. During March, Afton received $4,500 in deposits from customers for goods to be provided later in the year.
g. During March, Afton paid $8,000 for other expenses.

View Solution:

Sale on SolutionInn
  • CreatedFebruary 26, 2015
  • Files Included
Post your question