Molly's Auto Detailers maintains its records on the cash basis. 

During 2024, Molly's collected $72,600 from customers and paid $20,800 in expenses. 

Depreciation expense of $4,800 would have been recorded on the accrual basis. 

Over the course of the year, accounts receivable increased $4,400, prepaid expenses decreased $2,200, and accrued liabilities decreased $2,100. 

Calculate Molly's accrual-basis net income.

Answer rating: 100% (QA)

To calculate Mollys accrualbasis net income we need to adjust the cashbasis net income by consid... View the full answer