Q1) Use information given below to compute company's accounting net income for year.
| Credit Sales |
$500,000 |
| Cash Sales |
$300,000 |
| Operating Expenses on Credit |
$400,000 |
| Cash Operating Expenses |
$200,000 |
| Accounts Receivable (Beg. of Year) |
$20,000 |
| Accounts Receivable (End of Year) |
$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