Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $375,000; Cash paid for rent, $47,000; Cash paid to employees for services rendered during the year, $127,000; Cash paid for utilities, $57,000. In addition, you determine that customers owed the company $67,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $2,700 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.

Respuesta :

Answer:

Net Income for the year            234.500

Explanation:

Income Cash collected 375.000  

Income Customer Owed 67.000  

   

Total Income                  442.000  

   

Expenses Employees 127.000  

                Utilities               57.000  

                Rent                          23.500 The effect on results of for 1 year was paid for 2 years in advance.  

   

Total Expenses          207.500  

   

Net Income                 234.500