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Computation of net income from given data.
Use the following information to calculate the company's accounting net income for the year.
Credit Sales
$500,000
Cash Sales
$300,000
Operating Expenses on Credit
$400,000
Cash Operating Expenses
$200,000
Accounts Receivable (Beg. of Year)
$20,000
Accounts Receivable (End of Year)
$40,000
Accounts Payable (Beg. of Year)
$50,000
Accounts Payable (End. of Year)
$25,000
Corporate Tax Rate
40%
a. $60,000 b. $120,000 c. $39,000 d. $147,000
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