Buisness problem solving

Question

A business started the month with $5,000 in cash. During the month, it made sales of $8,000 (all cash) and paid expenses of $3,200.1.What is the total cash at the end of the month?2.What is the profit for the month?

Answer

1. total cash at the end of the month
starting cash = $5,000
cash sales = +$8,000
expenses paid = −$3,200
ending cash = 5,000 + 8,000 − 3,200 = $9,800
2. profit for the month
profit = sales − expenses= 8,000 − 3,200= $4,800
final answers:total cash at end of month = $9,800profit for the month = $4,800

Answer

cash flow and profit calculation
  
1. total cash at the end of the month
  
starting cash: $5,000
  cash inflows (sales): +$8,000
  cash outflows (expenses): -$3,200
  
ending cash = $5,000 + $8,000 - $3,200 = $9,800

2. profit for the month
  
revenue (sales): $8,000
  expenses: $3,200
  profit = revenue - expenses = $8,000 - $3,200 = $4,800    
  (note: all transactions are cash-based, so profit equals net cash change from operations: +$8,000 - $3,200 = +$4,800, added to starting cash.)

Answer

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Answer

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Buisness problem solving

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