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Molly's Auto Detailers maintains its records on the cash basis. During 2024, Molly's collected $72,800 from customers and paid $20,800 in expenses. Depreciation expense
Molly's Auto Detailers maintains its records on the cash basis. During 2024, Molly's collected $72,800 from customers and paid $20,800 in expenses. Depreciation expense of $3,700 would have been recorded on the accrual basis. Over the course of the year, accounts receivable increased $5,600, prepaid expenses decreased $2,900, and accrued liabilities decreased $1,300. Molly's accrual-basis net income was:
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