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Molly's Auto Detailers maintains its records on the cash basis. During 2018, Molly's collected $73,400 from customers and paid $20,900 in expenses. Depreciation expense of
Molly's Auto Detailers maintains its records on the cash basis. During 2018, Molly's collected $73,400 from customers and paid $20,900 in expenses. Depreciation expense of $3,300 would have been recorded on the accrual basis. Over the course of the year, accounts receivable increased $5,000, prepaid expenses decreased $2,300, and accrued liabilities decreased $1,600. Molly's accrual basis net income was:
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