Tri Fecta, a partnership, had revenues of $378,000 in its first year of operations. The partnership has not collected on $47,000 of its sales and still owes $38,700 on $235,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $28,100 in salaries. The partners invested $47,000 in the business and $26,000 was borrowed on a five-year note. The partnership paid $2,600 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. a) $332,110.b) $161,640.c) $166,290.d) $155,440.

$168,000

Explanation:

Cash balance at the end of the year = Cash Inflows - Cash outflows

Cash Outflows

= (Merchandise purchased  - Account payables) + Salaries + Interest + Insurance

= (235,000 - 38,700) + 28,100 + 2,600 + 8,900

= $235,900

Cash Inflows

= (Sales - Accounts receivables) + Investment by partners + Amount borrowed

= (378,000 - 47,000) + 47,000 + 26,000

= $404,000

Cash Balance = $168,000

Note: The options are most probably for a similar question.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.