Your company has a starting cash balance of 6,270 on January 1st. The company has 2,600 in accounts receivable on January 15th and 4,900 accounts payable on January 15th What will their cash balance be on January 15th at the close of business? A. 3,970 B. 8,870 C. 8,570 D. 13,770

To determine the cash balance on January 15th at the close of business, we need to account for the changes in accounts receivable and accounts payable from the starting cash balance.<br /><br />Given:<br />- Starting cash balance on January 1st: $6,270<br />- Accounts receivable on January 15th: $2,600<br />- Accounts payable on January 15th: $4,900<br /><br />The formula to calculate the new cash balance is:<br />\[ \text{New Cash Balance} = \text{Starting Cash Balance} + \text{Accounts Receivable} - \text{Accounts Payable} \]<br /><br />Substituting the given values:<br />\[ \text{New Cash Balance} = \$6,270 + \$2,600 - \$4,900 \]<br /><br />Now, perform the calculation:<br />\[ \text{New Cash Balance} = \$6,270 + \$2,600 - \$4,900 = \$3,970 \]<br /><br />Therefore, the cash balance on January 15th at the close of business will be:<br />A. $3,970