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Chuck Corporation began operating a new retail business in the current year and had $660,000 of sales, $70,000 of which had not been collected by year-end. Total purchases were $360,000 on which $30,000 is still owed. Ending inventory is $60,000; operating expenses are $180,000, $50,000 of which is still owed at year- end. a. Compute net income from the business under the accrual method. b. Compute net income from the business under the cash method. c. Would paying the $50,000 owed for operating expenses before year-end change the net income under the accrual method? Under the cash method? Page 60 of 61 Previous Page Next Page