Brightspace Question 16 0/4 poin LO3. Brenner, Inc. "earned" fees of $160,000, of which only $120,000 was collected and the rest was on account. Brenner, Inc. also "incurred" $115,000 in expenses, of which only $85,000 were paid and still owes the rest. Dividends paid during the year were $10,000. Under cash basis accounting, what was net income for the period? a) $120,000 b) $35,000 c) $85,000 d) $75,000 e) $5,000 Question 18 LO2. The purchase of merchandise inventory in cash will cause Stockholders' Net Income Assets Liabilities Equity A) Increase Decrease Decrease Increase B) Increase Increase Decrease Increase C) No Impact Increase Increase No Impact D) Decrease Increase Increase Increase E) No Impact No impact No Impact No Impact Example of Answer: A Answer: D Question 23 U74 points LO3. In March, Holly Company had the following transactions affecting inventory during March. Beg 500 units @ $10.00 300 units March 1 Balance March 5 Sale March 10 Purchase March 20 Sale March 30 Purchase 300 units @ $11.00 350 units 200 units $12.00 Compute cost of goods sold under Perpetual Inventory System using Weighted Average assumption a) $6,650 b) $6,800 c) $6,710 d) $7.200 e) $6,955