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Question - Primo Industries collected $104,015 from customers in 2014. Of the amount collected, $24,843 was from services performed in 2013. In addition, Primo performed services worth $39,837 in 2014, which will not be collected until 2015.
Primo Industries also paid $72,007 for expenses in 2014. Of the amount paid, $29,467 was for expenses incurred on account in 2013. In addition, Primo incurred $42,437 of expenses in 2014, which will not be paid until 2015.
(a) Compute 2014 cash-basis net income.
(b) Compute 2014 accrual-basis net income.
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