From the following information, calculate both the cash basis and accrual basis of accounting net income for
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Question:
From the following information, calculate both the cash basis and accrual basis of accounting net income for XYZ Company. Show your work.
During FY 2018, XYZ did the following:
- Sold and invoiced $500,000 in merchandise
- Received payment for $300,000 of that amount
- Billed by suppliers for $400,000
- Paid $300,000 in supplier invoices
- Was taxed at 37.6% of profits
- Declared dividends of $100,000
- Paid dividends of $75,000
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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