New Question 6-28-22
The following is available concerning the cash on hand, the accounts receivable, and the account payable for a construction company as of December 31st.
- Cash on hand was: $44,322.00
- The earned receivables for all jobs in progress were: $148,847.00
- The total of all trade accounts payable was: $123,221.00
All trade accounts payable currently under terms are a 2% discount if the entire invoice amount is paid by January 10th, the net is due within 30 days.
How much cash would the construction company have on hand following the transactions shown below?
- On January 2nd the construction company received full payment of its earned receivables
- On January 8th the construction company paid but $35,387.00 of its trade accounts payable taking the applicable discounts.
- January 11th the construction company paid the remaining $35,387.00 of its trade accounts payable.
- The construction company neither paid nor received any other funds than those listed above during the period January 1st to January 13th.
- $67,382.68
- $69,948.00
- $70,434.58
- $71,704.68
- Cash on Hand: $44,322.00
- Jan 2 Receivables: $148,847.00
- Total Avail Funds: = $193,169.00
- Trade Payable: $123,221.00
- Not paid by Jan 10: <$35,387.00 >
- Paid by Jan 8: = $87,834.00
- (2% discount) $87,834 x 98% = $86,077.32
- Paid Jan 11 = $35,387.00
- Total paid out = = $121,464.32
Total avail funds = $193,169.00
Total paid out = <$121,464.32>
Cash Balance = $71,704.68