1. Avenger’s Inc. began operations on January 1 of the current year with a $25,000 cash balance. 40% of sales are collected in the month of sale; 60% are collected in the month following the sale. Similarly, 45% of purchases are paid in the month of purchase, and 55% are paid in the month following purchase. 
2. The following data apply to January- 
3. Sales $75000,
4. purchases $60000,
5. and operating expenses- $9000 
6. and February – Sales $ 80000, 
7. purchases $65000, 
8. and operating expenses - $18000. 
9. If operating expenses are paid in the month incurred and include monthly depreciation charges of $5000. 
10. 
    
11. Determine the change in Avenger's cash balance during January and February month separately and the cash balance at the end of January and February.

Answer rating: 100% (QA)

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