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Cowhand's Bar-B-Q House went into business on January 1, 2009. The following information is available at December 31, 2009:
Sales revenue for the year
$300,000
Cash on hand at 12-31-2009
8,000
Contributed capital
50,000
Wages payable at year end
15,000
Cash received from customers during the year
190,000
Dividends paid during the year
Expenses incurred during the year (depreciation expense = $0)
195,000
Cash paid to buy long-term assets during the year
25,000
Accounts receivable at year-end
?
Required:
Determine the correct amount for each of the following:
a. What is the amount of net income?
b. What amount should be reported for retained earnings at year-end 2009?
c. What is the amount of accounts receivable at year end?
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