kim recently opened her own shop, and has contracted her service to a local hospital.She is paid a monthly fee for her service, and she recived a small gratuity from her accountatnt.She is quite upset.The statements show a cash balance of 3600 at the end of the month,but a net income of only $500.She has written you a letter asking you whether such a situation is possible, or whether she should find another accountant?
2007-12-19 05:24:33 · 3 answers · asked by Gaba a 1 in Business & Finance ➔ Personal Finance
Yes this is possible, but there isn't enough information in this problem to know for sure. Cash balances are carried over from previous periods while net income is only for the income earned in that period. So if at the beginning of the month, she has $3100 in her cash balance, then her net income of $500 will give her $3600. She could have also taken out a loan which adds to her cash balance but leaves net income unaffected. So if she has no money at the beginning of the month and takes out a loan for $3100 and receives $500 in net income, then her cash balance will be $3600.
2007-12-19 05:52:43 · answer #1 · answered by Anonymous · 0⤊ 0⤋
ithink if you ask this a third time you will get a better answer!!!!
2007-12-23 07:37:22 · answer #2 · answered by mister ed 7 · 0⤊ 0⤋
please find the enclosed to be of spoon without fork?
this makes no sense...
2007-12-19 13:32:14 · answer #3 · answered by Chz Burger Cat 3 · 0⤊ 0⤋