The owner of McBee Technical Services, Inc., is an engineer with little understanding of accounting. He needs to compute the following summary information from the accounting records:

a. Net income for the month of March.

b. Total cash paid during March.

c. Cash collections from customers during March.

d. Cash paid on a note payable during March.

The quickest way to compute these amounts is to analyze the following accounts:

Use a similar approach to compute the other three items.

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Account 1. Retained Earnings..... 2. Cash... 3. Accounts Receivable. 4. Note Payable....... Balance Mar. 31 $10,100 Additional Information for the Month of March Dividends, $3,800 Cash receipts, $61,200 Sales on account, $53,500 Feb. 28 $9,200 4,600 3,400 24,300 26,700 13,900 17,400 New borrowing, $6,300 The net income for March can be computed as follows: Retained Earnings March Dividends March 31 3,800 Feb. 28 Bal. March Net income Bal. 9,200 x = $4,700 10,100