Reference no: EM132618790

Question - During 2016, X Ltd's accounting records show the following:

i) Cash sales of $100,000;

ii) Credit sales of $100,000 of which $80,000 was collected by year-end;

iii) Paid $50,000 in cash expenses;

iv) Accrued expenses increased by $40,000;

v) Depreciation for the year amounts to $30,000;

vi) Dividends of $60,000 declared and paid on the final day of the year.

Required - Using only the data provided, what is X Ltd's accrual profit?

a. $80,000

b. $100,000

c. $120,000

d. $160,000

e. None of the above