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ABC company is small and is currently maintaining its books on a cash basis. The company recently borrowed $100,000 from a local bank and the

ABC company is small and is currently maintaining its books on a cash basis. The company recently borrowed $100,000 from a local bank and the bank requires ABC to provide annual financial statements to be prepared on an accrual basis. The following cash flows were recorded in 2024.

Cash collected for services to customers was $320,000

Cash paid:

Salaries $180,000
Supplies $25,000
Rent $12,000
Insurance $6,000
Miscellaneous expenses $20,000
Total cash paid for expenses $243,000

Thus, net operating cash flow: $77,000.

Here is some extra information:

January 1, 2024 December 31, 2024
Accounts receivable $32,000 $27,000
Prepaid insurance $0 $2,000
Supplies $1,000 $1,500
Accrued liabilities (for miscellaneous expenses) $2,400 $3,400

In addition, you learn that the bank loan was dated September 30, 2024, with principal and interest at 6% due in one year. 2024 annual depreciation expense on office equipment is $10,000.

What is the companys revenues? Expenses? And Net income?

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