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Question - During 20X1, hogan company had credit sales of $40,000 and cash sales of $18,000. In 20x1 hogan collected $21,000 o accounts receivable resulting from sales on credit. Hogan incurred operating expenses of $7,500; of this amount $2,900 was paid in 20x1 and the $4,600 balance represented a liability at year-end. In addition to these operation expenses, Hogan also purchased for cash a three-year insurance policy on January 1, 20x1. The cost of this policy was $3.000. What is Hogan's 20x1 accrual basis net income?
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