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Primo Industries collected $105,000from customers in 2017. Of the amount collected, $25,200was for services performed in 2016. In addition, Primo performed services worth $41,600 in
Primo Industries collected $105,000from customers in 2017. Of the amount collected, $25,200was for services performed in 2016. In addition, Primo performed services worth $41,600 in 2017, which will not be collected until 2018.Primo Industries also paid $73,500for expenses in 2017. Of the amount paid, $30,400was for expenses incurred on account in 2016. In addition, Primo incurred $42,200of expenses in 2017, which will not be paid until 2018.
1.Compute 2017 cash-basis net income. 2.Compute 2017 accrual-basis net income.
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