Alpaca Corporation's Whimsical Cash Balance Calculation

What is Alpaca Corporation's cash balance at the end of the first year?

A) $231,548

B) $263,300

C) $238,499

D) $248,900

Answer

The correct answer is C) $238,499

Let's dive into the whimsical world of Alpaca Corporation's financial adventure! Despite its quirky name, this company had revenues of $300,000 in its first year of operations. However, like any good story, there are twists and turns in the form of unpaid sales and merchandise purchases.

Total expenses for Alpaca Corporation include inventory purchases, salaries, interest expenses, and insurance expenses. After crunching the numbers, the net income after taxes comes to $175,448. But wait, there's more!

To calculate the cash balance, we need to consider the amount not collected on accounts receivable, the amount still owed on purchases, prepaid insurance, money invested by owners, and money borrowed. All this math leads us to the whimsical number of $238,148 as Alpaca Corporation's cash balance at the end of the first year.