Cash account balance Obj. 1, 2, 3 During the month, Bavarian Auto Co. received $1,245,000 in cash and paid out $974,200 in cash.

a. Does this information indicate that Bavarian Auto Co. had net income of $270,800 during the month? Explain.

b. If the balance of the cash account is $421,000 at the end of the month, what was the cash balance at the beginning of the month?

AppendixLO1