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Sagot :
The cash balance at the end of the year is $11,000.
What is the cash balance at year's end?
The Opening Balance is the sum of money available at the beginning of the month (1st day of the month). The amount of money on hand at the month's end is known as the closing balance (the last day of the month). Using the equation below, the closing balance is determined.
The closing balance is equal to the opening balance plus the total income minus the total expenses. You will have the same amount of cash at the conclusion of one accounting period as you will at the start of the subsequent period. You should have $5,000 at the start of January if your cash balance at the end of December was $5,000.
Given:
Cash generated during the year = Cash inflow - Cash Outflow
Cash generated during the year = ($12,000+2,000) - 7,000 = $7,000
Given:
Cash balance at the end of the year = Opening cash balance + Cash generated during the year
So by putting values, we have:
Cash balance at the end of the year = $4,000 + $7,000 = $11,000
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