Problem: The records of Rahman Company include the following information about its activities for the year just ended.
|
Beginning cash balance
|
$ 40,000
|
|
Increase in accounts receivable
|
60,000
|
|
Cash collections from customers
|
50,000
|
|
Purchase of property, plant and equipment
|
15,000
|
|
Decrease in accounts payable
|
28,000
|
|
Cash paid to suppliers
|
10,000
|
|
Issuance of common stock
|
4,000
|
|
Net income
|
120,000
|
|
Depreciation expense
|
8,000
|
What are the sources of cash, and amounts, for the business during the period?
What is the cash balance at the end of the year?