Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows:
Cash collected from customers, $340,000; Cash paid for rent, $40,000; Cash paid to employees for services rendered during the year, $115,000; Cash paid for utilities, $48,000.
In addition, you determine that customers owed the company $51,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $1,100 at year-end, and the rent payment was for a two-year period.
Calculate accrual net income for the year.