Cash account balance During the month, Bavarian Auto Co. received $309,100 in cash and paid out $260,900 in cash. a. Does this information indicate that Bavarian Auto Co. had net income of $48,200 during the month? No Net income is the net change in all assets and liabilities from operating (revenue and expense) transactions. b. If the balance of the cash account is $69,850 at the end of the month, what was the cash balance at the beginning of the month? Feedback Check My Work a. Consider what account classifications are affected by net income and how stockholders' equity is increased. b. Set up a T account for Cash. Receipts of cash are increases and payments are decreases to the Cash account