Lauren owns a restaurant. She had a beginning cash balance of $2,500, $57,250 in total cash sales, $5,300 for utilities, $7,500 in loan payments, and $3,200 for marketing costs. What is Lauren's ending cash balance for the year?

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Multiple Choice

Lauren owns a restaurant. She had a beginning cash balance of $2,500, $57,250 in total cash sales, $5,300 for utilities, $7,500 in loan payments, and $3,200 for marketing costs. What is Lauren's ending cash balance for the year?

Explanation:
Ending cash is found by taking the starting cash and adding cash inflows while subtracting cash outflows. In this case, the cash inflow is the total cash sales of 57,250. The cash outflows are utilities 5,300, loan payments 7,500, and marketing costs 3,200. Start with 2,500, add the inflow: 2,500 + 57,250 = 59,750. Subtract the outflows: 59,750 − 5,300 = 54,450; 54,450 − 7,500 = 46,950; 46,950 − 3,200 = 43,750. The ending cash balance is 43,750.

Ending cash is found by taking the starting cash and adding cash inflows while subtracting cash outflows. In this case, the cash inflow is the total cash sales of 57,250. The cash outflows are utilities 5,300, loan payments 7,500, and marketing costs 3,200. Start with 2,500, add the inflow: 2,500 + 57,250 = 59,750. Subtract the outflows: 59,750 − 5,300 = 54,450; 54,450 − 7,500 = 46,950; 46,950 − 3,200 = 43,750. The ending cash balance is 43,750.

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