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During 2011, ABC Company had credit sales of $40,000 and cash sales of $18,000. In 2011 ABC collected $21,000 of accounts receivable resulting from sales
During 2011, ABC Company had credit sales of $40,000 and cash sales of $18,000.
In 2011 ABC collected $21,000 of accounts receivable resulting from sales on credit.
ABC incurred operating expenses of $7,500; of which $2,900 was paid in 2016, and the $4,600 balance represented a liability at year end.
In addition to these operating expenses, ABC also purchased a three year insurance policy for cash on January 1, 2011.
The cost of this policy was $3,000.
What is ABC's 2011 cash basis net income?
What is ABC's 2011 accrual basis net income?
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