Question

If the beginning Cash account balance of Rainbow, Inc. was $36,800, the ending balance was $20,400, and total cash received during the period was $88,000, what amount of cash was paid out during the period?

Select one:

A. $ 3,600
B. $ 84,800
C. $104,400
D. $ 71,600

Answer 1

Answer:

C. $104,400

Explanation:

The computation of the cash paid out during the period is shown below:

= Beginning cash balance + cash received - ending cash balance

= $36,800 + $88,000 - $20,400

= $104,400

By adding the cash received and deducting the ending cash balance from the beginning cash balance we get the amount of cash paid and we did the same that is shown above