Because Kendall's business spent more money than it collected, the business's balance sheet showed a balance of -$1,280$ at the end of the month. The next day, Kendall's business spent $560 on new tools. Part A Kendall determines that the new balance is -$720 because 1,280 + 560 = -720 . Did Kendall correctly determine the new balance? Explain why or why not. If not, calculate the new balance. Respond in the space provided.

No. Kendall did not correctly determine the new balance. The new balance is -$1840.

Step-by-step explanation:

From the question, we are informed that Kendall's business spent more money than it collected, and therefore the business's balance sheet showed a balance of -$1,280 at the end of the month. We are informed that the next day, Kendall's business spent $560 on new tools.

Therefore, since Kendall made a purchase, this is an expense and we have to subtract it from the previous balance. This will be:

= -$1280 - $560

= - $1840

The new balance is -$1840