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  1. business
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  3. assume a company began operations on january 1 of

Assume a company began operations on January 1 of the current year with a $11,200...

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Accounting

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Assume a company began operations on January 1 of the current year with a $11,200 cash balance. Forty percent of sales are collected in the month of sale and 60% are collected in the month following sale. 10% of purchases are paid in the month of purchase, and 90% are paid in the month following purchase. The following information applies to January and February: Sales Purchases Operating expenses January February $ 27,000 $47,000 26,000 32,000 6,2008,200 If operating expenses are paid in the month incurred and include monthly depreciation charges of $1,700, the change in the cash balance during February is Multiple Choice $200 increase 0 $1,900 increase. ooo $7,400 increase

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