Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $370,000; Cash paid for rent, $46,000; Cash paid to employees for services rendered during the year, $126,000; Cash paid for utilities, $56,000. In addition, you determine that customers owed the company $66,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $2,600 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year. Net income
Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $370,000; Cash paid for rent, $46,000; Cash paid to employees for services rendered during the year, $126,000; Cash paid for utilities, $56,000. In addition, you determine that customers owed the company $66,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $2,600 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year. Net income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from
customers, $370,000; Cash paid for rent, $46,000; Cash paid to employees for services rendered during the year, $126,000; Cash
paid for utilities, $56,000.
In addition, you determine that customers owed the company $66,000 at the end of the year and no bad debts were anticipated. Also,
the company owed the gas and electric company $2,600 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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