8 pt The following events apply to X Company in 2016 Perform

8 pt The following events apply to X Company in 2016: Performed services for clients on account Performed services for clients for cash Incurred operating expenses on account Paid salaries to employees Collected cash from accounts receivable Paid cash on accounts payable $9,932 4,292 4,434 1,931 1,708 3,064 What was net income in 2016? . AO $5,420 BO7,859 CO S11,396 DO $16,524 EO $23,959 FO $34,741

Solution

Collection in cash for accounts receivable or payment of cash for accounts payable wont affect the revenue or expenses and hence are not to be considered in the above calculation

Performed Services for clients on account	9932
Performed Services for clients for cash	4292
Incurre Operating Expenses on account	-4434
Paid salaries to employees	-1931
Net Income	7859