A company has the following information related to its cash and cash equivalents for the year ended December 31, 2022:

• Cash in hand, January 1, 2022: $50,000
• Cash in banks, January 1, 2022: $100,000
• Cash received from customers during the year ended December 31, 2022: $500,000
• Cash paid to suppliers during the year ended December 31, 2022: $400,000
• Interest received on bank deposits during the year ended December 31, 2022: $5,000

Required: (a) Calculate the total cash and cash equivalents, December 31, 2022. (5 marks)

(b) Calculate the net increase or decrease in cash and cash equivalents for the year ended December 31, 2022. (5 marks)

Answer rating: 100% (QA)

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