Question

St. Pierre Inc. made sales of $600 million during 2020. Of this amourt, St. Pierre no collected as for all but 531 million. The company's cost of goods sold was $10 milion, and all other expenses for the year totaled 5275 million. Also during 2020, 81. Pierre Inc. paid $300 million for its inventory and $200 million for everything else Beginning cash was $115 milion St. Pierre in management is interviewing you for a job and they ask two questions: - How much wes St. Pierre Inc.'s not income for 2020 b. How much was St. Pierre n'cash balance at the end of 20007 .. How much was St. Pierre Inc.'s not income for 2007 St. Pierres et income for 2000 is million b. How much was St. Pierre Ire's cash balance at the end of 2007 St. Pierre's cash balance the end of 2020 is 5 million

Answer 1

Solution:

Requirement a. Calculation of net income for 2020

Sales	$600 million
Less: Cost of goods sold	$310 million
Less: Other Expenses	$275 million
Net Income	$15 million

Requirement b. Calulation of cash balance at the end of 2020

Beginning cash balance	$115 million
Add: Cash recieved from sales ($600 million - $31 million)	$569 million
Less: Payment for inventory in cash	$390 million
Less: Payment for other expenses in cash	$290 million
Closing cash balance at the end of 2020	$4 million

_{Please rate positive and comment in case of any doubt. I would be happy to help you further.}