Reference no: EM132953320

Tri Fecta, a partnership, had revenues of $371,000 in its first year of operations. The partnership has not collected on $46,200 of its sales and still owes $38,600 on $225,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $25,800 in salaries. The partners invested $40,000 in the business and $21,000 was borrowed on a five-year note. The partnership paid $2,520 in interest that was the amount owed for the year and paid $8,800 for a two-year insurance policy on the first day of business. Ignore income taxes.

Problem 1: Compute the cash balance at the end of the first year for Tri Fecta.

Multiple Choice

Option 1: $ 169,880
Option 2: $ 162,280
Option 3: $ 166,680
Option 4: $ 174,280