Southeast Corporation made sales of $ 950 million during 2018. Of this amount, Southeast collected cash for $ 876 million. The company's cost of goods sold was $ 260 million, and all other expenses for the year totaled $ 275 million. Also during 2018 , Southeast paid $ 410 million for its inventory and $ 250 million for everything else. Beginning cash was $ 75 million. a. How much was Southeast 's net income for 2018 ? b. How much was Southeast 's cash balance at the end of 2018 ? a. How much was Southeast 's net income for 2018 ?

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Business

Obie

12 October, 23:33

Southeast Corporation made sales of $ 950 million during 2018. Of this amount, Southeast collected cash for $ 876 million. The company's cost of goods sold was $ 260 million, and all other expenses for the year totaled $ 275 million. Also during 2018 , Southeast paid $ 410 million for its inventory and $ 250 million for everything else. Beginning cash was $ 75 million. a. How much was Southeast 's net income for 2018 ? b. How much was Southeast 's cash balance at the end of 2018 ? a. How much was Southeast 's net income for 2018 ?

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Ava Daniel · Answer 1

The cash balace was $291.000.000

The Net Income was $415.000.000

Explanation:

You have to divide the operations in two the operations that represent cash flow and operations that only represent a register in the accounting but doesn't represent money exchange.

Net income

Sales $950.000.000

Cost of sold goods - $260.000.000

other expenses - $415.000.000

Total net income $415.000.000

Cash balance

Beginning Cash $75.000.000

Collected cash + $876.000.000

Paid invetory - $410.000.000

Paid Everything else - $250.000.000

Total cash balance $291.000.000

As you can see the first things that you have to do is clasified the movements if they represents money gets by yhe company (+) or cost or expeditures (-), and after you have to make the operations.