Asked by Stacy Folkes on Jul 27, 2024
Verified
As of the beginning of the quarter, Callahan, Inc. had a cash balance of $320. During the quarter the company paid suppliers $230. The company collected $400 from customers. The company also paid an interest payment of $40 and $170 in taxes. In addition, the company borrowed $100. What is Callahan's cash balance at the end of the quarter?
A) $60
B) $180
C) $380
D) $520
E) $620
Cash Balance
The amount of cash a company has available at any given time, including currency, coins, and balances in checking and savings accounts.
Interest Payment
The amount paid by a borrower to a lender as compensation for the use of borrowed money.
Suppliers
Entities or individuals that provide goods or services to companies or other individuals, often playing a critical role in supply chains.
- Ascertain the final cash balance for a certain timeframe, incorporating projected revenue, outlays, and principles of cash governance.
Verified Answer
KP
Keeley ParkerJul 28, 2024
Final Answer :
C
Explanation :
The cash balance at the end of the quarter is calculated as the initial cash balance plus cash inflows minus cash outflows. Starting with $320, adding $400 from customers and $100 from borrowing, then subtracting $230 paid to suppliers, $40 in interest, and $170 in taxes gives a final balance of $380.
Learning Objectives
- Ascertain the final cash balance for a certain timeframe, incorporating projected revenue, outlays, and principles of cash governance.