Solution-What is the accrual-basis net income

What is the accrual-basis net income

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Reference no: EM132821990

Question - Sandhill Industries collected $105,000 from customers in 2020. Of the amount collected, $25,700 was for services performed in 2019. In addition, Sandhill performed services worth $38,900 in 2020, which will not be collected until 2021. Sandhill Industries also paid $71,300 for expenses in 2020. Of the amount paid, $29,300 was for expenses incurred on account in 2019. In addition, Sandhill incurred $40,900 of expenses in 2020, which will not be paid until 2021.

Required -

1. What is the cash-basis net income of 2020?

2. What is the accrual-basis net income of 2020?

Reference no: EM132821990

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What is the accrual-basis net income

Reference no: EM132821990

Reference no: EM132821990

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