Question

Acme Company Balance Sheet As of January 5, 2018 (amounts in thousands) Cash 14,100 Accounts Payable 1,900 Accounts Receivable 3,200 Debt 3,600 Inventory 4,900 Other Liabilities 2,000 Property Plant & Equipment 16,300 Total Liabilities 7,500 Other Assets 500 Paid-In Capital 7,200 Retained Earnings 24,300 Total Equity 31,500 Total Assets 39,000 Total Liabilities & Equity 39,000 Update the balance sheet above to reflect the transactions below, which occur on January 6, 2018 1. Issue $80,000 in stock 2. Borrow $65,000 from a bank 3. Receive payment of $12,000 owed by a customer 4. Pay $6,000 owed to a supplier 5. Buy $17,000 worth of manufacturing supplies on credit 6. Purchase equipment for $47,000 in cash 7. Pay $8,000 owed to a supplier What is the final amount in Cash? Please specify your answer in the same units as the balance sheet. Answer Save your answer Show navigation tips

Answer 1

Calculation of final amount in cash
	Amount
Beginning cash balance	$14,100
Add: 1. Cash received through the issue of stock	$80
Add: 2. Cash received from the bank	$65
Add: 3. Cash received from the customer	$12
Less: 4. Cash paid to the supplier	$6
Less: 6. Cash paid to purchase equipment	$47
Less: 7. Cash paid to the supplier	$8
Ending cash balance (final amount in cash)	$14,196

.

Note: The 5th transaction is on credit. So there is no cash outflow.