Graphic Design Inc had a beginning balance of $2,000 in its Accounts Receivable account The ending balance of Accounts Receivable was $2,400 During the period, Graphic Design recognized $40,000 of revenue on account The Salaries Payable account has a beginning balance of $1,300 and an ending balanc...

a Computation of Net Income Revenue recognized on account 40000 Less ac ...

Graphic Design Inc. had a beginning balance of $2,000 in its Accounts Receivable account. The ending balance

Question:

Graphic Design Inc. had a beginning balance of $2,000 in its account. The ending balance of was $2,400. During the period, Graphic Design recognized $40,000 of revenue on account. The Salaries Payable account has a beginning balance of $1,300 and an ending balance of $900. During the period, the company recognized $35,000 of accrued salary expense.
Required
a. Based on the information provided, determine the amount of net income.
b. Based on the information provided, determine the amount of net cash flow from operating activities.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...