Requirement 2. At what level of revenues will CathyCathy Rugs earn the same operating income under either option? a. For what r
ange of unit sales will CathyCathy Rugs prefer option 1? b. For what range of unit sales will CathyCathy Rugs prefer option 2? Begin by determining the formula to calculate the operating income where each option is equal.
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Answer:
Answer for the question:
Haskins and Jones, Attorneys-at-Law, maintains its books on a cash basis. During 2021, the law firm collected $610,000 for services rendered to its clients and paid out $425,000 in expenses. You are able to determine the following information about accounts receivable, prepaid expenses, deferred service revenue, and accrued liabilities: January 1, 2021 December 31, 2021 Accounts receivable $ 75,000 $ 67,000 Prepaid insurance 5,800 7,100 Prepaid rent 10,500 9,600 Deferred service revenue 10,500 12,200 Accrued liabilities (for various expenses) 13,500 17,700 In addition, 2021 depreciation expense on office equipment is $28,500. Required: Determine accrual basis net income for 2021.
is given in the attachment.
Explanation:
