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A company reported the following amounts and balances: Beginning capital balance $45,000, Net Sales $420,000, Cost of Goods Sold $273,000, Total Expenses $112,000, Net Income $35,000, Ending Cash Balance $22,000, Withdrawals $7,200, Ending Accounts Receivable $27,000. What is the Ending Capital Balance?
a. $94,600
b. $38,200
c. $72,800
d. $49,600

Respuesta :

jepessoa

Answer:

c. $72,800

Explanation:

ending capital balance = beginning capital balance + net income - withdrawals = $45,000 + $35,000 - $7,200 = $72,800

Ending capital balance refers to total owners' capital balance after the accounting period is closed. Net income increases owners' capital while withdrawals or dividends decrease it.

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