Question - Primo Industries collected $105,000 from customers in 2017. Of the amount collected, $25,200 was for services performed in 2016. In addition, Primo performed services worth $41,600 in 2017, which will not be collected until 2018. Primo Industries also paid $73,500 for expenses in 2017. Of the amount paid, $30,400 was for expenses incurred on account in 2016. In addition, Primo incurred $42,200 of expenses in 2017, which will not be paid until 2018.
1. Compute 2017 cash-basis net income.
2. Compute 2017 accrual-basis net income.