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Anna35 [415]
3 years ago
14

Primo Industries collected $105,000 from customers in 2019. Of the amount collected, $25,000 was for services performed in 2018.

In addition, Primo performed services worth $40,000 in 2019, which will not be collected until 2020. Primo Industries also paid $72,000 for expenses in 2019. Of the amount paid, $30,000 was for expenses incurred on account in 2018. In addition, Primo incurred $42,000 of expenses in 2019, which will not be paid until 2020.
Required:
a. Compute 2014 cash-basis net income.
b. Compute 2014 accrual-basis net income.
Business
1 answer:
bearhunter [10]3 years ago
5 0

Answer:

a. $33,000.

b. $36,000.

Explanation:

Net income is calculated as sales minus cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expenses. It is also called net earnings.

Now, Cash accounting recognizes revenue and expenses only when money changes hands, but accrual accounting recognizes revenue when it's earned, and expenses when they're billed (but not paid).

a. 2014 Cash-basis net income:

Primo Industries collected $105,000 from customers in 2019

Primo Industries also paid $72,000 for expenses in 2019

=105,000-72,000

=$33,000

b. 2014 accrual-basis net income.

=(105,000-25000+40000)-(72000-30000+42000)

=120000-84000

=$36,000

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Which of the following is true of first movers? a. The first mover cannot be able to establish brand loyalty. b. Being a first m
boyakko [2]

Answer:

The first mover that creates a revolutionary product is in a monopoly position.

Explanation:

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3 years ago
A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $100 per day. Assume
tangare [24]

Answer:

a. What is the MRP?

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MRP = 1,500 packages x $0.10 per package = $150

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MRC = $200 (the cost of renting the delivery truck)

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c. Next suppose that the cost of renting a vehicle falls back down to $100 per day, but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation?

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The company should not add the delivery truck because MRP is less than MRC.

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Westkost [7]

Answer:

s

Explanation:

s

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