Compute the company net income for the year

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Problem - Computing and Comparing Income and Cash Flow Measures - Penno Corporation recorded service revenues of $120,000 during the current year, of which $170,000 were on credit and $18,000 were for cash. Moreover, of the $102,000 credit sales, Penno collected $12,000 cash on those receivables before year-end. The company also paid $15,000 cash for wages during the year. Its employees also earned another $9,000 in wages during the last few weeks of the year, which were not yet paid at year-end.

Required -

a. Compute the company's net income for the year.

b. How much net cash inflow or outflow did the company generate during the year?

Reference no: EM132767873

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