Montego company’s cash account had a balance of $14,000 on january 1. analysis of the company’s cash account during the year revealed the following information: receipts from customers $ 50,000 payments for dividends 10,000 receipts of dividends 5,000 payments for merchandise 25,000 receipts from issuance of stock 20,000 on december 31, the company’s cash account had a balance of

$54,000

Explanation:

The computation of the ending cash balance is shown below:

= Beginning cash balance + cash receipts - cash payments

where,

Beginning cash balance is $14,000

Cash receipts would be

= Receipts from customers + Receipts of dividends + Receipts from issuance of stock

= $50,000 + $5,000 + $20,000

= $75,000

And, the cash payment is

= Payments for dividends + Payments for merchandise

= $10,000 + $25,000

= $35,000

So, the ending cash balance would be

= $14,000 + $75,000 - $35,000

= $54,000