(Learning Objective 1: Linking accrual accounting and cash flows) Fleetwood Corporation made sales of $700 million during 20X3. Of this amount, Fleetwood collected cash for all but $30 million. The company’s cost of goods sold was $300 million, and all other expenses for the year totaled $350 million. Also during 20X3, Fleetwood paid $400 million for its inventory and $280 million for everything else. Beginning cash was $100 million. Fleetwood’s top management is interviewing you for a job and they ask two questions:
a. How much was Fleetwood’s net income for 20X3?
b. How much was Fleetwood’s cash balance at the end of 20X3? You will get the job only if you answer both questions correctly.