Given the information below, calculate the company’s cash balance at t

Given the information below, calculate the company’s cash balance at the end of the year.

Cash Balance at Beginning of Year $80,000
Activity During the Year
Increase in Accounts Payable $60,000
Decrease in Accounts Receivable $40,000
Depreciation Expense $500,000
Net Income $2,000,000
Purchase of Fixed Assets $800,000
Sales of Common Stock $100,000
Decrease in Notes Payable $85,000
Dividends Paid $15,000

ANSWER

Increase in Accounts Payable $60,000 (source)
Decrease in Accounts Receivable $40,000 (source)
Depreciation Expense $500,000 (source)
Net Income $2,000,000
Purchase of Fixed Assets $800,000 (use)
Sales of Common Stock $100,000 (source)
Decrease in Notes Payable $85,000 (use)
Dividends Paid $15,000 (use)
Change in Cash for the Year $1,800,000
Cash Balance at the End of Year = $80,000 + $1,800,000 = $1,880,000