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Brief Exercise $1-1($Algo$)$ Accrual accounting $[$LO$1-2]$

Cash flows during the first year of operations for the Harman$-$Kardon Consulting Company were as follows: Cash collected from customers, $$365,000$; Cash paid for rent, $$45,000$; Cash paid to employees for services rendered during the year, $$125,000$; Cash paid for utilities, $$55,000.$

In addition, you determine that customers owed the company $$65,000$ at the end of the year, and no bad debts were anticipated. Also, the company owed the gas and electric company $$2,500$ at year$-$end, and the rent payment was for a two$-$year period.

Calculate accrual net income for the year.

Net income

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