Compute the cash balance at the end of the first year

Assignment Help Financial Accounting

Reference no: EM131219442

Alpaca Corporation had revenues of $265,000 in its first year of operations. The company has not collected on $19,200 of its sales and still owes $27,300 on $97,500 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $13,000 in salaries. Owners invested $15,500 in the business and $15,500 was borrowed on a five-year note. The company paid $4,100 in interest that was the amount owed for the year, and paid $8,100 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. Compute the cash balance at the end of the first year for Alpaca Corporation.

Reference no: EM131219442

Questions Cloud

What happens to the formulas after row or column is inserte : Explain how you change a cell from relative to absolute AND give a detailed example of when you would use absolute cell referencing. Describe in detail the procedure to insert a row and column in Excel. Then describe what happens to the formulas afte..

Determine the selling price of the bonds : George Hincapie Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bikes. As the controller of the company, determin..

Four equal annual year-end payments : Consider a 4-year amortizing loan. You borrow $1,000 initially, and repay it in four equal annual year-end payments. If the interest rate is 10 percent, show that the annual payment is $315.47. Show that the loan balance after 1 year is equal to the ..

What is the monthly rate on this annuity : Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $80,000 at age 65, the firm will pay the retiring professor $600 a month until death. If the professor’s remaining life expectancy is 20 years, what is the m..

Compute the cash balance at the end of the first year : Alpaca Corporation had revenues of $265,000 in its first year of operations. The company has not collected on $19,200 of its sales and still owes $27,300 on $97,500 of merchandise it purchased. Alpaca has an effective income tax rate of 40%. Compute ..

Two Awful Anniversaries : Read the article, “Two Awful Anniversaries.” Based on the content presented in the article, describe some of the issues with federal taxation. Does the research by Art Laffer and other economists suggest that over time states that have no income tax ..

Determine the after-closing balances in revenue-expense : As of December 31, 2014, Blue Haven Company had total assets of $20,000, total liabilities of $6,000, and common stock of $10,000. The company’s 2014 income statement contained revenue of $3,000 and expenses of $2,000. Determine the before-closing ba..

Manufactures cycling equipment : George Hincapie Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bikes

Assuming four-variance analysis of overhead variances : Petrillo produces all of its valves in a single plant. Normal activity is 20,000 units per year. Standard overhead rates are computed based on normal activity measured in standard direct labor hours. Prepare all possible journal entries (assuming a f..

User Account

All Pages