During the first year of operations a company sold 109000 of

During the first year of operations, a company sold $109,000 of goods to customers and received $94,500 in cash from customers. The remainder is owed to the company at the end of the year. The company incurred $70,900 in expenses for the year and paid $65,900 in cash for these expenses. The remainder is owed by the company at the end of the year. Based on this information, what is the amount of net income for the year?

During the first year of operations, a company sold $109,000 of goods to customers and received $94,500 in cash from customers. The remainder is owed to the company at the end of the year. The company incurred $70,900 in expenses for the year and paid $65,900 in cash for these expenses. The remainder is owed by the company at the end of the year. Based on this information, what is the amount of net income for the year?

Solution

Dear Student thankyou for using chegg. Please refer the answer and gives thumbsup. Calculation of Net Income for the year Particulars Amount(in$) Cash Sales 94500 Add: Credit Sales(109000-94500) 14500 Less: Expenses paid in cash -65900 Outstanding expenses(70900-65900) -5000 Net Income for the year 38100