a) Steve's Golf Supplies reports $35,000 sales revenue for the current year, $10,000 of which was from credit sales and still outstanding at the end of the year. During the year, operating expenses of $12,000 were incurred. Of these expenses, $9,000 were paid in cash and the remainder will be paid next year. In addition, the business prepaid advertising expenses for next year of $6,000. Required: Calculate the profit or loss earnt by the business for the current year using the cash basis of accounting (4

a) Steve's Golf'Supplies reports $35,000 sales revenue for the current year, $10,000 of which was from credit sales and still outstanding at the end of the year. During the year, operating expenses of $12,000 were incurred. Of these expenses, $9,000 were paid in cash and the remainder will be paid next year. In addition, the business prepaid advertising expenses for next year of $6,000. Required: Calculate the profit or loss earnt by the business for the current year using the cash basis of accounting (4