Sub: Accounts Topic: Accounting basics
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%