Cash-basis and accrual-basis net income

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Conan Industries collected $108,924 from customers in 2010. Of the amount collected, $27,295 was from revenue earned on account in 2009. In addition, Conan earned $39,092 of revenue in 2010, which will not be collected until 2011.

Conan Industries also paid $71,411 for expenses in 2010. Of the amount paid, $33,331 was for expenses incurred on account in 2009. In addition, Conan incurred $42,259 of expenses in 2010, which will not be paid until 2011.

Instructions

(a) Compute 2010 cash-basis net income.

(b) Compute 2010 accrual-basis net income.

Reference no: EM13121819

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