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Problem 1: During 2018, Towson Company had credit sales of $46,000 and cash sales of $19,000. In 2018 Towson collected $31,000 of accounts receivable resulting from sales on credit. Towson incurred operating expenses of $45,000; of this amount, $42,900 was paid in 2018, and the remaining balance represented a liability at year-end. In addition to these operating expenses, Towson also purchased for cash a three-year insurance policy on January 1, 2018. The cost of this policy was $6,000. What is Towson's 2018 accrual basis net income or loss? Enter a loss as a negative number.
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