# Alpha Company began operations on January 1 with cash of $75,000. All of January's$150,000 sales...

Alpha Company began operations on January 1 with cash of $75,000. All of January's$150,000 sales were on account. During January no customer collections occurred. Cost of goods sold was $45,000, and there was no ending inventories or any accounts payable. Use this information to determine the ending balance of cash on hand for January. ## Managerial Accounting Managerial accounting refers to an accounting framework that provides managers with reliable accounting information that they can utilize to make well-informed decisions about the operations of a company. Managerial accounting reports such as production and sales reports are valuable in the process of decision-making. ## Answer and Explanation: Details from the question: • Beginning cash balance =$75,000
• January sales(credit) =$150,000 • Cost of goods sold =$45,000

Since there is no other collection made from customers in the month,

Ending cash balance = beginning cash balance - cost of goods sold

= $75,000 -$45,000

=$30,000 Therefore, the ending cash balance is$30,000.