1. Based on the following information, what is the amount of McKee Companys income before income taxes, assuming the accrual method of accounting?

• Credit Sales totaled $320,000.
• Cash Sales totaled $414,000.
• Cash collected from customers for services not performed yet $93,000.
• Dividend Income $4,500.

2. Marshall borrowed $25,000 on August 31, 2019, and signed a nine-month, 5%, interest-bearing note payable with interest to be paid at maturity. What amount of accrued interest payable should be recorded on the December 31, 2019, year-end Balance Sheet?

• Cost of Goods Sold $336,000.
• Salaries Expense $50,000.
• Rent Expense $32,000.
• Other Operating Expenses $80,000.
• Interest Expense $21,000.
• Prepaid Rent $3,000.
• Gain on the sale of equipment $20,000.

3. A company provided the following data: sales, $150,000; sales returns, $8,000; ending inventory, $40,000; net purchases of inventory, $85,000; and gross profit, $37,000. What was the amount of Beginning inventory?