Cash drawings

Loss on sale of equipment

Insurance expense

Bank loan paid

Cost of sales

Inventory purchased for cash

Collections from accounts receivable

Beginning cash balance

2,200

900

100

4,500

15,000

8,000

16,400

400

Insurance paid in advance

Cash paid for equipment purchased

Credit sales

Wages paid

Accounts payable paid

Depreciation expense

Cash sales

Ending cash balance

1,200

10,000

18,000

3,800

450

1,400

23,000

9,650

The effect on profits from these transactions is:

a.$19,800

b.$11,900

c.Unable to be calculated from the information given

d.$11,700

e.$4,800