question 16

Use the following information for questions 15-16. Sheepskin Company had the following transactions during 2008. Sales of $5,500 on account Collected $2,225 for services to be performed in 2009 Paid $600 cash in salaries Purchased airline tickets for $255 in December for a trip to take place in 2009 What is Sheepskin's 2008 net income using accrual accounting? a. $3,875 b. $5,875 c. $4,900 d. $3,625 15. What is Sheepskin's 2008 net income using cash basis accounting? 16