Question

If the beginning Cash account balance of Moonbeam, Inc. was $40,000, the ending balance was $67,200, and the total cash paid out during the period was $128,000, what amount of cash was received during the period?

Select one:

A. $148,800

B. $187,200

C. $ 19,200

D. $155,200

Answer 1

Solution:
	Answer is D. $155,200
Working Notes:
	Ending balance = Beginning balance + Amount received - paid during the period
	$67,200 = $40,000 + Amount received - $128,000
	Amount received = $67,200 + $128,000 - $40,000
	Amount received = $155,200
Notes:	Ending balance of cash is calculated by adding beginning cash balance & amount cash received during the period after deducting amount of cash paid during the period.
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