Abc company uses cash-basis accounting for its records

Reference no: EM13587416

ABC Company uses cash-basis accounting for its records. During 2010, ABC collected $400,000 from its customers, made payments of $300,000 to its suppliers for inventory, and paid $140,000 for operating costs. ABC wants to prepare accrual-basis financial statements. In gathering information for the accrual-basis financial statements, ABC discovered the following:

? Customers owed ABC $45,000 at the beginning of 2010 and $55,000 at the end of 2010.

? ABC owed suppliers $20,000 at the beginning of 2010 and $28,000 at the end of the 2010.

? ABC's beginning inventory was $40,000 and its ending inventory was $44,000.

What should ABC's Gross Profit be on the accrual basis?

Reference no: EM13587416

Questions Cloud

Having analyzed its mesa plant operations for purposes of : wilmington inc. manufactures ? ve models of kitchen appliances at its mesa plant.the company is installing

Darin is the bakers 18-year-old son who is not a student : john and janet baker are husband and wife and maintain a household in which the following persons live calvin and

Samples2 i want a unique version of this : i want a unique version of this

What kind of biotechnology may be considered to treat : 1. what are the primary considerations before deciding to implement an aerobic treatment process?2. what kind of

Abc company uses cash-basis accounting for its records : abc company uses cash-basis accounting for its records. during 2010 abc collected 400000 from its customers made

The questions that follow are based on rule 101 of the : the questions that follow are based on rule 101 of the aicpa code of the professional conduct as it relates to

Venus crates manufactures custom crates for a variety of : venus crates manufactures custom crates for a variety of uses. the following data have been recorded for job 551 which

A bottle of vinegar has an acetic acid concentration of : a bottle of vinegar has an acetic acid concentration of 0.78m. what are the equilibrium concentrations the ph and

Division a currently sells 40000 sets of strings to : better banjos is a small manufacturing company located in southern arkansas. they specialize in producing high quality

User Account

All Pages