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Tri Fecta, a partnership, had revenues of $372,000 in its first year

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Tri Fecta, a partnership, had revenues of $372,000 in its
first year of operations. The partnership has not collected
on $45,600 of its sales and still owes $39,600 on $200,000
of merchandise it purchased. There was no inventory on
hand at the end of the year. The partnership paid $30,500
in salaries. The partners invested $48,000 in the business
and $26,000 was borrowed on a five-year note. The
partnership paid $2,340 in interest that was the amount
owed for the year and paid $8,900 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.
$ 299,790
$ 208,710
$ 204,260
$ 198,260
Tri Fecta, a partnership, had revenues of $372,000 in its
first year of operations. The partnership has not collected
on $45,600 of its sales and still owes $39,600 on
$200,000 of merchandise it purchased. There was no
inventory on hand at the end of the year. The partnership
paid $30,500 in salaries. The partners invested $48,000 in
the business and $26,000 was borrowed on a five-year
note. The partnership paid $2,340 in interest that was the
amount owed for the year and paid $8,900 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.

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Solution
D) $198,260
Compute the cash balance at the end of the first year for
Tri Fecta:
Particulars Amount
Cash receipts :
Sales revenue = $372,000
Less: A/R = $45,600
__________
Net Sales $326,400
Partner Investment $48,000
Bank loan $26,000
___________
Total Receipts $400,400
Less:
Cash disbursements:
Purchases = $200,000
Less A/P = $39,600
____________
$160,400
Salaries = $30,500

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Tri Fecta, a partnership, had revenues of $372,000 in its first year of operations. The partnership has not collected on $45,600 of its sales and still owes $39,600 on $200,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $30,500 in salaries. The partners invested $48,000 in the business and $26,000 was borrowed on a five -year note. The partnership paid $2,340 in interest that was the amount owed for the year and paid $8,900 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. $ 299,790 $ 208,710 $ 204,260 $ 198,260 Tri Fecta, a partnership, had revenues of $372,000 in its first year of operations. The partnership has not collected on $45,600 of its sales and still owes $39,600 on $200,000 of merchandise it purchased. There was n ...
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