Computation of net income from given data.
Use the following information to calculate the company's accounting net income for the year.
|
Credit Sales
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$500,000
|
|
Cash Sales
|
$300,000
|
|
Operating Expenses on Credit
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$400,000
|
|
Cash Operating Expenses
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$200,000
|
|
Accounts Receivable (Beg. of Year)
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$20,000
|
|
Accounts Receivable (End of Year)
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$40,000
|
|
Accounts Payable (Beg. of Year)
|
$50,000
|
|
Accounts Payable (End. of Year)
|
$25,000
|
|
Corporate Tax Rate
|
40%
|
a. $60,000
b. $120,000
c. $39,000
d. $147,000