ABC Company uses cash basis accounting for its records. During 2010, ABC collected $400,000 from its customers, made payments of $300,000 to its suppliers for inventory, and paid $140,000 for operating costs. ABC wants to prepare accrual basis financial statements. In gathering information for the accrual basis financial statements, ABC discovered the following:
Customers owed ABC $45,000 at the beginning of 2010 and $55,000 at the end of 2010. ABC owed suppliers $20,000 at the beginning of 2010 and $28000 at the end of the 2010. ABC's beginning inventory was $40000 and its ending inventory was $44000.
What should ABC's Gross Profit be on the accrual basis?