Use the following information to calculate the change in the company's cash balance for the year.

Credit Sales

$783,527

Cash Sales

$505,852

Operating Expenses on Credit

$198,022

Cash Operating Expenses

$696,922

Accounts Receivable (Beg. of Year)

$48,166

Accounts Receivable (End of Year)

$79,277

Accounts Payable (Beg. of Year)

$48,930

Accounts Payable (End of Year)

$100,107

Income Taxes Paid

$159,499

To calculate the change in the company's cash balance for the year, we will consider the cash inflows and outflows related to sales, expenses, and taxes. Here's how we can approach this:

### Step 1: Calculate Cash Inflows
- **Cash Sales**: $ \$505,852 $ (This is already a cash inflow)
- **Collections from Credit Sales**: 

  We need to calculate the amount collected from accounts receivable. This is done by considering the beginning and ending accounts receivable balances.

  \[
  \text{Collections from Credit Sales} = \text{Credit Sales} + \text{Accounts Receivable (Beg. of Year)} - \text{Accounts Receivable (End of Year)}
  \]
  \[
  = \$783,527 + \$48,166 - \$79,277 = \$752,416
  \]

  So, the total cash inflows are:
  \[
  \text{Total Cash Inflows} = \$505,852 + \$752,416 = \$1,258,268
  \]

### Step 2: Calculate Cash Outflows
- **Cash Operating Expenses**: $ \$696,922 $
- **Payments for Credit Operating Expenses**: 

  We need to calculate the payments made towards accounts payable:

  \[
  \text{Payments for Credit Operating Expenses} = \text{Operating Expenses on Credit} + \text{Accounts Payable (Beg. of Year)} - \text{Accounts Payable (End of Year)}
  \]
  \[
  = \$198,022 + \$48,930 - \$100,107 = \$146,845
  \]

- **Income Taxes Paid**: $ \$159,499 $

  So, the total cash outflows are:
  \[
  \text{Total Cash Outflows} = \$696,922 + \$146,845 + \$159,499 = \$1,003,266
  \]

### Step 3: Calculate the Change in Cash Balance
Now, we subtract the total cash outflows from the total cash inflows:

\[
\text{Change in Cash Balance} = \text{Total Cash Inflows} - \text{Total Cash Outflows}
\]
\[
= \$1,258,268 - \$1,003,266 = \$255,002
\]

**Final Answer:**
The company's cash balance increased by **$255,002** for the year.

---

Do you want any details or have any questions? Here are five related questions to explore further:

1. How would the change in cash balance differ if income taxes were deferred?
2. What impact would a change in credit terms have on the accounts receivable?
3. How does the timing of payments for operating expenses affect cash flow?
4. What would happen to the cash balance if the company had more credit sales than cash sales?
5. How does the increase in accounts payable impact the cash outflows?

**Tip:** Tracking accounts receivable and payable balances is crucial for managing cash flow effectively. It helps in understanding the timing of cash inflows and outflows.

Use the following information to calculate the change in the company's cash balance for the year.

Credit Sales: $783,527

Cash Sales: $505,852

Operating Expenses on Credit: $198,022

Cash Operating Expenses: $696,922

Accounts Receivable (Beg. of Year): $48,166

Accounts Receivable (End of Year): $79,277

Accounts Payable (Beg. of Year): $48,930

Accounts Payable (End of Year): $100,107

Income Taxes Paid: $159,499

Learn how to calculate the change in a company's cash balance using financial data including credit sales, cash sales, operating expenses, accounts receivable, and accounts payable. This detailed guide covers key concepts in cash flow analysis and financial accounting, suitable for undergraduate business students.

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