Can you check if my answer is correct Tri Fecta, a partnership, had revenues of

Question

Can you check if my answer is correct

Tri Fecta, a partnership, had revenues of $360,000 in its first year of operations. The
partnership has not collected on $35,000 of its sales, and still owes $40,000 on $150,000
of merchandise they purchased. There was no inventory on hand at the end of the year.
The partnership paid $25,000 in salaries. The partners invested $40,000 in the business
and $25,000 was borrowed on a five-year note. The partnership paid $3,000 in interest
that was the amount owed for the year and paid $8,000 for a two-year insurance policy on
the first day of business.
Required:
- Compute net income for the first year for Tri Fecta.
- Compute the cash balance at the end of the first year for Tri Fecta.

Revenues $360,000
Expenses:
Cost of goods sold $150,000
Salaries 25,000
Interest 3,000
Insurance 4,000
Net Income $178,000

- Compute the cash balance at the end of the first year for Tri Fecta.

Cash receipts:
Sales revenue $360,000
Less: Accounts receivable 35,000
Owners' investments 40,000
Total receipts 390,000
Cash disbursements:
Purchases 150,000
Less: Accounts payable 40,000
Salaries paid 25,000
Interest paid 3,000
Insurance paid 8,000
Total cash disbursements 146,000
Ending cash balance $244,000

Explanation / Answer

ANSWER:    

         We are 95% confident that the population difference between these proportions is between –13.37% and 15.55%.

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