# Net income calculation-1- Accounting Basics

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```					              Sub: Accounts                                                           Topic: Accounting basics

Question:
Computation of net income from given data.

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1.Use the following information to calculate the company's accounting net income for the year.

Credit Sales \$500,000

Cash Sales \$300,000

Operating Expenses on Credit \$400,000

Cash Operating Expenses \$200,000

Accounts Receivable (Beg. of Year) \$20,000

Accounts Receivable (End of Year) \$40,000

Accounts Payable (Beg. of Year) \$50,000

Accounts Payable (End. of Year) \$25,000

Corporate Tax Rate 40%

a. \$60,000

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Description: Calculation of net income for a fiscal year : Use the following information to calculate the company’s accounting net income for the year. Credit sales, Cash, Operating Expenses, Accounts Receivable, Accounts Payable, and Corporate Tax Rate.
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