Question

The Bloom Company issued stock for $51,500 cash on January 20, 2011. During 2011, the company recorded revenue on account of $18,300 and expenses for which cash was paid of $10,120. Bloom received $10,350 cash from accounts receivable. The company also purchased land for $6,075 cash. Based on this information, the amount of change in cash for 2011 was _____

Answer 1

Answer:

$45,655

Explanation:

The computation of the amount change in cash for 2011 is given below:

= Issued stock for cash - expenses incurred for cash + cash received from account receivable - purchase value of land for cash

= $51,500 - $10,120 + $10,350 - $6,075

= $45,655

Simply we recognized that transactions that involves only cash transactions