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Concordia Industries collected $105,711 from customers in 2014. Of the amount collected, $27,955 was from revenue accrued from services performed in 2013. In addition, Concordia recognized $43,876 of revenue in 2014, which will not be collected until 2015.
Concordia Industries also paid $73,626 for expenses in 2014. Of the amount paid, $29,810 was for expenses incurred on account in 2013. In addition, Concordia incurred $38,350 of expenses in 2014, which will not be paid until 2015.
(a) Compute 2014 cash-basis net income.
(b) Compute 2014 accrual-basis net income.
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