The following information relates to Old Company for September of this year: Opening cash balance......................................................$16,000 Depreciation expense...........................................................4,000

Question:

The following information relates to Old Company for September of this year:

Opening cash balance......................................................$16,000
Depreciation expense...........................................................4,000
Dividends declared................................................................6,000

Cash collections...................................................................36,000
Equipment, loss on sale (original cost $14,000)................3,200
Cash operating expenses...................................................15,800
Cash purchases of merchandise.......................................22,000

Required:

What will be Old’s cash balance on September 30? Assume current book value of equipment is $10,000.

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Related Book For answer-question

Introduction to Managerial Accounting

ISBN: 978-1259105708

5th Canadian edition

Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

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Question Posted: Oct 11, 2019 01:39 PM

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The following information relates to Old Company for September of this year: Opening cash balance......................................................$16,000 Depreciation expense...........................................................4,000

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Cash balance September 1 16000 Add Cash collections 360...View the full answer

Introduction to Managerial Accounting

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