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Company Y began business in February 2 0 2 3 . By the end of the calendar year, it had billed its clients for $
Company began business in February By the end of the calendar year, it had billed its clients for $ million of services and had incurred $ of operating expenses. As of December it had collected $ million of its billings and had paid $ of its expenses. It expects to collect the remaining outstanding bills and pay the remaining expenses by March Company adopted a calendar year for federal tax purposes. It may use either the cash method or the accrual method of accounting on its first tax return, and it has asked you to quantify the value of using the cash method for the first year. In doing so assume Company uses a percent discount rate to compute NPV Use Appendix A
Note: Round discount factors to decimal places, intermediate computations and final answers to the nearest whole dollar amount. Enter your answers in dollars not in millions of dollars.
tabletableAccrual method:AmountIncome from billings,Expenses incurred,Net income in $
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