Tennison Corporation Had the Following Transactions in Its First Year

question 109

Multiple Choice

Tennison Corporation had the following transactions in its first year of operations:
$$\begin{array} { | l | r | } \hline \text { Sales(90\% collected in year) } & \$ 1,500,00 \\\text { Bad debt write-offs } & 60,000 \\\hline \text { Disbursements for costs and expenses } & 1,200,000 \\\hline \text { Disbursements for income taxes } & 90,000 \\\hline \text { Purchases of fixed assets } & 400,000 \\\hline \text { Depreciation of fred assets } & 80,000 \\\hline \text { Proceeds from issuance of common stock } & 500,000 \\\hline \text { Proceeds from short-tem borrowings } & 100,000 \\\hline \text { Payments on short-tern borrowings } & 50,000 \\\hline\end{array}$$ What is the cash balance at year end?

• A) $150,000.
• B) $170,000.
• C) $210,000.
• D) $280,000.

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Definitions:

Gross Margin Percentage

A financial metric that measures the difference between revenue and cost of goods sold as a percentage of revenue.

Year 2

Generally refers to the second year of a specific time period, such as a fiscal or calendar year.

Net Profit Margin Percentage

A financial metric that shows the percentage of net income generated from total revenues, indicating a company's profitability.

Year 2

Typically refers to the second year of operation, reporting, or analysis within a given context, such as fiscal years, project timelines, or investment periods.