Question - Haskins and Jones, Attorneys at law, maintain its books on a cash basis. During 2016, the company collected $545,000 in fees from its clients and paid out $412,000 in expenses. You are able to determine the following information about accounts receivable, prepaid invoices, deferred fee revenue, and accrued liabilities:
January 1, 2016 December 31, 2016
Accounts receivable $62,000 $55,000
Prepaid insurance $4,500 $6,000
Prepaid rent $9,200 $8,200
Deferred fee revenue $9,200 $11,000
Accrued liabliites $12,200 $15,600 (for various expenses)
In addition, 2016 depreciation expense on furniture and fixtures is $22,000.
Required: Determine accrual basis net income for 2016.