The cash balance at the beginning of December was $8,305.
Introduction
To calculate the cash balance at the start of the month, we will take the ending cash balance and reverse calculate the cash-based transactions that occurred during the month.
Methodology
If cash was received during the period, then it would be deducted from the ending balance. Similarly, where the cash was decreased due to the amount being paid to the supplier or any other party then it would be added back to the ending balance, for calculation of the opening balance of the month.
The calculation is shown below:
Cash Balance 31 December - $9,869
Less: Cash Sales - ($2,763)
Less: Common Stock Sold - ($2,550)
Add: Taxes Paid - $2,032
Add: Payments for equipment - $1,496
Add: Dividends Paid - $221
Cash Balance 1 December $8,305
Note: Inventory received and Credit Sales are not taken, as these are not cash-based transactions and are therefore excluded in the calculations above.
Learn more on Cash-Based Transactions here: https://brainly.com/question/4555544
