Compute net income, Carmen opens a retail store. Her sales

Compute net income

Reference no: EM1368642

Cash and Accrual Methods. Carmen opens a retail store. Her sales during the first year are $600,000, of which $30,000 has not been collected at year-end. Her purchases are $400,000. She still owes $20,000 to her suppliers, and at year-end she has $50,000 of inventory on hand. She incurred operating expenses of $160,000. At year-end she has not
paid $15,000 of the expenses.

a. Compute her net income from the business assuming she elects the accrual method.
b. Compute her net income from the business assuming she elects the cash method.
c. Would paying the $15,000 she owes for operating expenses before year-end change her net income under accrual method of reporting? under the cash method?

Reference no: EM1368642

Questions Cloud

Important information about medical office procedures : Suggest a procedure to ensure timely billing and describe the importance of such procedures for timely billing and explain how timely billing relates to the medical office's cash flow.

Write program to show percentage of calories come from fat : Write a program which asks user to enter number of calories and fat grams in a food item. The program must display percentage of the calories that come from fat.

Explain ethical behavior can shift depending on situation : Explain Ethical behavior can shift depending on the situation and In order for an organization to eliminate unethical behavior, it will have a code of conduct in place

Show the inancial reporting : Why is it important to report discontinued operations or extraordinary items separately from income from continuing operations and is this method of reporting allowed? What concerns does this type of reporting create?

Compute net income : Carmen opens a retail store. Her sales during 1st year are $600,000, of which $30,000 has not been collected at the year end. Her purchases are $400,000.

Explain what are the pros and cons of each vendor : Explain What are the pros and cons of each vendor and What are some issues you would consider in making the decision to select a database vendor for an organization you work for?

Prepare a reformulated balance sheet : Of the total liabilities, $190 million were deemed to be financing liabilities. Make a reformulated balance sheet that distinguishes items involved in operations those involved in financing activities.

Write function which computes and returns sum of n numbers : Write a function, sumsteps2, which computes and returns sum of 1 to n in steps of 2, where n is argument passed to function. For example if 11 is passed, it will return 1 + 3 + 5 + 7 + 9 = 11.

Implement and evaluate an ems : How do you develop, implement, and evaluate an EMS and what are some challenges in completing this process also what is an LCA

User Account

All Pages