Compute the cash balance at the end of the first year for


Tri Fecta, a partnership, had revenues of $363,000 in its first year of operations. The partnership has not collected on $46,000 of its sales and still owes $38,400 on $235,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $28,200 in salaries. The partners invested $49,000 in the business and $25,000 was borrowed on a five-year note. The partnership paid $3,000 in interest that was the amount owed for the year and paid $8,300 for a two-year insurance policy on the first day of business. Ignore income taxes.

Compute the cash balance at the end of the first year for Tri Fecta.

a) $162,500
b) $154,900
c) $166,650
d) $159,050 

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Accounting Basics: Compute the cash balance at the end of the first year for
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