Compute cash-basis net income

Reference no: EM131962032

Problem

Primo Industries collected $104,000 from customers in 2017. Of the amount collected, $25,800 was for services performed in 2016. In addition, Primo performed services worth $38,600 in 2017, which will not be collected until 2018. Primo Industries also paid $73,600 for expenses in 2017. Of the amount paid, $30,200 was for expenses incurred on account in 2016. In addition, Primo incurred $43,300 of expenses in 2017, which will not be paid until 2018.

(a) Compute 2017 cash-basis net income.

(b) Compute 2017 accrual-basis net income.

Reference no: EM131962032

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