Jeni Arrington drives for a large moving company. The company contacts Jeni when it has a job
Question:
Jeni Arrington drives for a large moving company. The company contacts Jeni when it has a job for her and furnishes a truck for her use. Jeni picks up the truck, drives to the customer’s home, and loads, transports, and delivers the customer’s belongings. She returns the truck to the company and receives her pay. Jeni is paid $4.50 per mile for the job. She is responsible for paying for her own gas, food, and lodging. Also, she must hire any helpers she needs to load and unload the truck. Jeni traveled 2,400 miles on a recent job that was completed on June 30. She paid $500 for gas, $116 for food, $204 for lodging, and $100 for helpers. Jeni expects to receive payment on July 5. How much did Jeni earn for the job? How much cash did Jeni spend while providing the service? Why is there a difference in cash flow and net income?
Step by Step Answer:
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright