Use the following information to calculate the company's accounting net income for the year.

Credit Sales $800,000 Cash Sales $500,000 Operating Expenses on Credit $200,000 Cash Operating Expenses $700,000 Accounts Receivable (Beg. of Year) $50,000 Accounts Receivable (End of Year) $80,000 Accounts Payable (Beg. of Year) $50,000 Accounts Payable (End of Year) $100,000 Corporate Tax Rate 40%

a. $120,000 b. $240,000 Correct c. $125,000 d. $300,000

Please show step by step how to get to 240,000. Thanks